Effect of Firm Size on Sales Growth with Capital Structure as An Intervening Variable

Shafarina Dewi Kusuma, Nurika Restuningdiah, Puji Handayati

Abstract


The increasing need for consumer goods can cause the sectors of consumer goods are trying to increase their production activity which is supported by the firm's performance. It gives a signal of the high level of cash flow in the future and as a positive signal to creditors as an indication of the firm's sales growth. The purpose of this research is to test the validity of trade-off theory and resource-based view theory. In addition, this study aims to determine the direct effect and indirect effect between firm size on sales growth through capital structure. The sample used in this study are the sixteen companies for three years and those were tested by using path analysis and uses a quantitative research approach. The results of this study prove that firm size has a significant positive effect on sales growth through capital structure, which is proven based on the comparison of the indirect effect with the direct effect. This study aims to determine the direct effect and indirect effect between firm size on sales growth through capital structure. The sample used in this study is sixteen consumer goods sector companies that are listed on the Indonesia Stock Exchange throughout 2016-2018. Sixteen companies were tested using path analysis. The result of this study shows that firm size has a significant positive effect on sales growth through capital structure, which is proven based on the comparison of the indirect effect with the direct effect.

Full Text:

PDF

References


Brealey, R., & Myers, S. (1991). Principles of corporate finance (Fourth ed.). McGraw Hill Inc.

Brigham, E. F., & Houston, J. F. (2001). Manajemen keuangan (Eight ed.). Erlangga.

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121.

Harahap, S. (2008). Analisis kritis manajemen keuangan. PT Raja Grafindo Persada.

Ichwan, F. Y., & Widyawati, D. (2015). Pengaruh ukuran perusahaan, struktur aktiva dan profitabilitas terhadap struktur modal. Jurnal Ilmu dan Riset Akuntansi, 4(6), 1-9.

Irfan, M., & Ali, M. (2017). Impact of financing on sales growth. Research Journal of Finance and Accounting, 8(19), 60-69.

Kasmir. (2012). Analisis laporan keuangan. PT. Raja Grafindo Persada.

Kodrat, D., & Herdinata, C. (2009). Manajemen keuangan based on empirical research. Graha Ilmu.

Lumapow, L. S. (2018). The influence of managerial ownership and firm size on debt policy. Proceedings of the 1st International Conference of Project Management (ICPM), 1(1).

Meriani, N., & Krisnadewi, K. (2012). Pengaruh kondisi keuangan, pertumbuhan perusahaan dan reputasi auditor pada pengungkapan opini audit going concern. Jurnal Ilmiah Akuntansi Dan Bisnis, 34(4), 1-28.

Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance, 39(3), 574–592.

Nason, R. ., & Wiklund, J. (2015). No Title. Journal of Management. SAGE Journal, 44, 32–60.

Penrose, E. (2009). The theory of the growth of the firm (Fourth ed.). Oxford University Press.

Peteraf, M. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179–191.

Riduwan, & Kuncoro, E. A. (2015). Cara menggunakan dan memakai path analysis (analisis jalur). BPFE-UGM.

Riyanto, B. (2015). Dasar-dasar pembelanjaan perusahaan. BPFE-UGM.

Sartono, R. A. (2015). Manajemen keuangan teori dan aplikasi (Fourth ed.). Fakultas Ekonomi dan Bisnis UGM.

Simanora, N. S. (2017). Emiten consumers good diprediksi tumbuh 10%-13%. https://market.bisnis.com/read/20170126/7/623213/emiten-consumers-good-diprediksi-tumbuh-10-13

Simanora, N. S. (2018). Indofood Sukses Makmur (INDF) optimis lebih baik pada tahun politik. https://market.bisnis.com/read/20181203/192/865851/indofood-sukses-makmur-indf-optimistis-lebih-baik-pada-tahun-politik

Sugeng, B. (2017). Manajemen keuangan fundamental. Deepublish.

Susanti, Y., & Agustin, S. (2015). Faktor-Faktor yang mempengaruhi struktur modal perusahaan food and beverages. Jurnal Ilmu Dan Riset Manajemen, 4(9), 1-15.

Wijaya, I. P., & Utama, M. . (2014). Pengaruh profitabilitas, struktur aset, dan pertumbuhan penjualan terhadap struktur modal serta harga saham. E-Jurnal Akuntansi Universitas Udayana, 6(3), 514–530.




DOI: https://doi.org/10.32535/jicp.v4i1.1131

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 Shafarina Dewi Kusuma, Nurika Restuningdiah, Puji Handayati

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Flag Counter

Published by:

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:+62 341 366222
Email: journal.jicp@gmail.com
Website:http://ejournal.aibpmjournals.com/index.php/JICP

Supported by: Association of International Business & Professional Management

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2622-0989 (Print)
ISSN 2621-993X (Online)

DOI:Prefix 10.32535 by CrossREF

Journal of International Conference Proceedings (JICP) INDEXED:

 

In Process


This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.