Examining Capital Structure on Firm Performance among Countries with Different Lending Rates, with Industry Competition as Moderating Variable

Evelyn Tania, Eddy Junarsin, Ph.D, C.F.P.®

2023 | Tesis | S2 SAINS MANAJEMEN

Melalui pesatnya perkembangan teknologi dan transformasi industri, intensitas persaingan di berbagai sektor semakin meningkat karena bantuan teknologi yang membantu banyak orang memasuki arena persaingan dan mendukung mereka melawan para pemain utama industri. Sementara itu, hubungan antara struktur modal dan nilai/kinerja perusahaan selalu menjadi topik penting dalam literatur keuangan bisnis. Tujuan dari penelitian ini adalah untuk menyelidiki hubungan antara struktur modal dan kinerja perusahaan, serta bagaimana intensitas persaingan mempengaruhi hubungan ini dalam konteks negara-negara ASEAN, dengan menggunakan data sampel dari 208 perusahaan dari 3 industri di negara-negara ASEAN5 dari periode waktu 2010-2021. Penelitian ini menggunakan aspek baru untuk menyelidiki apakah terdapat perbedaan antara efek moderasi intensitas persaingan di berbagai negara dan industri. Hasil empiris penelitian ini menunjukkan bahwa struktur modal mempunyai hubungan negatif terhadap kinerja perusahaan, hal ini mendukung teori pecking order, pengaruh moderasi intensitas persaingan terhadap hubungan struktur modal dengan kinerja perusahaan dinyatakan positif dan signifikan, artinya persaingan yang lebih tinggi akan meningkatkan kekuatan hubungan tersebut, dan hanya variabel negara yang menunjukkan hubungan yang signifikan dalam perbedaan pengaruh intensitas persaingan yang moderat, sedangkan variabel industri ditemukan tidak memberikan perbedaan yang signifikan.

Through the rapid development of technologies and industry transformation, the competition intensity in various sectors have been increasing due to the help of technologies that helped many enter the competitive arena and supported them as they go against the main players of the industries. Meanwhile, the relationship between capital structure and firm value/performance has always been a significant topic among the literature in business finance. The aim of this research is to investigate the relationship between capital structure and firm performance, as well as how the competition intensity affects this relationship in the context of ASEAN countries, using the sample data from 208 companies from 3 industries within the ASEAN5 countries from the time period of 2010-2021. This research employed the novel aspect of investigating whether there’s a difference among the moderating effects of the competition intensity in different countries and industry. The empirical result of this study shows that capital structure may have a negative relationship with firm performance, supporting the pecking order theory, the moderating effect of competition intensity on the relationship between capital structure and firm performance is found to be positive and significant, meaning that higher competition will increase the strength of the relationship, and only the country variable demonstrates a significant relationship in the difference of effect the moderating competition intensity may have, while the industry variable is found to not provide significant difference.

Kata Kunci : Capital Structure, Firm Performance, Competition Intensity, Pecking Order Theory, Trade-Off Theory, ASEAN5