THE EFFECT OF CAPITAL STRUCTURE AND MANAGERIAL OWNERSHIP ON COMPANY VALUE THROUGH FINANCIAL PERFORMANCE IN THE FOOD & BEVERAGE SUB-SECTOR ON THE INDONESIA STOCK EXCHANGE

Muhammad Arif; Nisrul Irawati; Syahyunan

doi:10.54443/jaruda.v4i3.288

Authors

Muhammad Arif Universitas Sumatera Utara
Nisrul Irawati Universitas Sumatera Utara
Syahyunan Universitas Sumatera Utara

DOI:

https://doi.org/10.54443/jaruda.v4i3.288

Keywords:

Capital Structure, Managerial Ownership, Financial Performance, Firm Value, SEM-PLS.

Abstract

Abstract The food and beverage industry is a strategic sector that plays an important role in the national economy and attracts considerable attention from investors in the capital market. Firm value reflects market perceptions of a company’s performance and prospects, which are influenced by capital structure, managerial ownership, and financial performance. This study aims to analyze the effect of capital structure and managerial ownership on firm value, the effect of financial performance on firm value, as well as the role of financial performance as an intervening variable in food and beverage sub-sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. This research employs a quantitative approach using secondary data from 13 companies with a total of 65 observations, analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method. The results show that capital structure has a positive and significant effect on firm value, managerial ownership has a positive and significant effect on firm value, and financial performance has a positive and significant effect on firm value. In addition, capital structure and managerial ownership are found to have a negative and significant effect on financial performance. Furthermore, financial performance is able to mediate the effect of capital structure on firm value as well as the effect of managerial ownership on firm value. These findings indicate that financing decisions and managerial ownership mechanisms not only have a direct impact on firm value but also operate through financial performance as a channel of influence. Therefore, optimal capital structure management and enhanced effectiveness of managerial ownership are important factors in improving firm value in a sustainable manner.

References

Baihaqi, A., Hidayat, R., & Putra, Y. (2021). Struktur Modal dan Kinerja Keuangan Perusahaan Manufaktur. Jurnal Manajemen Strategi, 9(2), 101–115.

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.

Irawati, N., & Sipayung, F. (2017). Banking Financial Accessibility Among Traditional Market Traders In Brastagi City. Terengganu International Finance and Economics Journal (TIFEJ), 5(1), 25-30.

Irawati, N., Sadalia, I., & Marlina, L. (2018). Company Performance Predictions By Agency Cost, Earning Management Using The Z-Score (Case Study In Indonesia). KnE Social Sciences.

Maulana, R. (2024). Kepemilikan Manajerial dan Profitabilitas Terhadap Nilai Perusahaan Food And Beverage. Jurnal Manajemen Bisnis, 15(2), 77–92.

Modigliani, F., & Miller, M. H. (1958). The Cost Of Capital, Corporation Finance And The Theory Of Investment. American Economic Review, 48(3), 261–297.

Myers, S. C., & Majluf, N. S. (1984). Corporate Financing And Investment Decisions When Firms Have Information That Investors Do Not Have. Journal Of Financial Economics, 13(2), 187–221.

Pambudi, R., & Ahmad, A. (2022). Profitabilitas dan Nilai Perusahaan. Jurnal Manajemen Dan Akuntansi, 14(1), 10–25.

Rivandi, M., & Petra, B. (2022). Profitabilitas dan Keputusan Investasi. Jurnal Akuntansi Dan Keuangan, 24(2), 150–165.

Spence, M. (1973). Job Market Signaling. Quarterly Journal Of Economics, 87(3), 355–374.

Syahyunan, S., Siregar, F. H., & Miraza, Z. (2022). Kinerja Lingkungan, Biaya Lingkungan Dan Ukuran Perusahaan Terhadap Kinerja Keuangan Dengan Corporate Social Responsibility Sebagai Variabel Intervening. Inovatif: Jurnal Ekonomi, Manajemen, Akuntansi, Bisnis Digital Dan Kewirausahaan, 1(2), 187-205.