Research Article
Do Firm Size and Asset Structure Effect Capital Structure Through Firm Profitability? Evidence from Coal Mining Industry
@INPROCEEDINGS{10.4108/eai.4-11-2022.2328391, author={Intan Purbasari and Enok Nurhayati and Suhaeni Suhaeni}, title={Do Firm Size and Asset Structure Effect Capital Structure Through Firm Profitability? Evidence from Coal Mining Industry}, proceedings={Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Economic Matters, ICOSTELM 2022, 4-5 November 2022, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICOSTELM}, year={2023}, month={9}, keywords={company size (ln total assets) company assets profitability (return on assets) and capital structure (debt to asset ratio)}, doi={10.4108/eai.4-11-2022.2328391} }- Intan Purbasari
Enok Nurhayati
Suhaeni Suhaeni
Year: 2023
Do Firm Size and Asset Structure Effect Capital Structure Through Firm Profitability? Evidence from Coal Mining Industry
ICOSTELM
EAI
DOI: 10.4108/eai.4-11-2022.2328391
Abstract
This study examines mediating role of profitability on the relationship between firm size and asset structure and capital structure in Coal Mining industry from the Indonesia Stock Exchange (IDX) listed firms. Total sample of current study represented by 13 companies with 130 firm-year observations from 2010-2019. The results of this study indicate that: (1) firm size has a positive and significant effect on capital structure (2) asset structure has a positive and significant effect on capital structure (3) profitability has a significant and negative effect on capital structure, (4) firm size has no negative and insignificant effect on profitability, (5) asset structure has no negative and insignificant effect on profitability. Profitability is not able to mediate the effect of firm size and asset structure on capital structure. The results of the study are expected to provide insight to investors in viewing financial statement from various aspect, not only judging from the size of the company size and asset structure, so that the information obtained by investors is more accurate in assessing the company’s prospects and determining investment.