Proceedings of the 16th International Symposium on Management (INSYMA 2019)

Internationalization, firm performance, and capital structure: an empirical study in Indonesia

Authors
Joshua Hendra Edward, Deddy Marciano
Corresponding Author
Deddy Marciano
Available Online March 2019.
DOI
10.2991/insyma-19.2019.14How to use a DOI?
Keywords
internationalization, firm performance, capital structure
Abstract

The objective of this study is to examine the impact of internationalization, firm performance, and capital structure: an empirical study in Indonesia. This research used industrial manufacturing companies listed on the Indonesian Stock Exchange over the 2012-2016 period. The dependent variable in this study is the capital structure. Independent variables used are internationalization and firm performance, Control variables used are size, age current ratio, tangibility, and total asset turnover. This study used multiple linear regression analysis models (two-stage least square) to test the hypothesis with a sample of 57 manufacturing companies listed on the Indonesian Stock Exchange over the 2012-2016 period. The number of observation used in this study was 285 observations at first by using classical. The study findings suggest that internationalization has a significant positive effect on relative performance based on historical target, and a significant negative effect on relative performance based on the industrial target. While relative performance based on historical target and relative performance based on industrial target has a significant positive effect on short term debt and private debt and also has a significant negative effect on long term debt, total debt, and public debt.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 16th International Symposium on Management (INSYMA 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
March 2019
ISBN
978-94-6252-694-5
ISSN
2352-5398
DOI
10.2991/insyma-19.2019.14How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Joshua Hendra Edward
AU  - Deddy Marciano
PY  - 2019/03
DA  - 2019/03
TI  - Internationalization, firm performance, and capital structure: an empirical study in Indonesia
BT  - Proceedings of the 16th International Symposium on Management (INSYMA 2019)
PB  - Atlantis Press
SP  - 52
EP  - 56
SN  - 2352-5398
UR  - https://doi.org/10.2991/insyma-19.2019.14
DO  - 10.2991/insyma-19.2019.14
ID  - Edward2019/03
ER  -