Firm Size and Business Risk on Debt Policy with Profitability as Moderating Variables

Authors

  • Shifa Hanida Shifa Universitas Sultan Ageng Tirtayasa
  • Iis Ismawati University of Sultan Ageng Tirtayasa
  • Mukhtar University of Sultan Ageng Tirtayasa
  • Nurhayati Soleha University of Sultan Ageng Tirtayasa
  • Ina Indriana University of Sultan Ageng Tirtayasa

DOI:

https://doi.org/10.54408/jabter.v1i5.92

Keywords:

Firm Size, Business Risk, Debt Policy, Profitability

Abstract

This study aims to examine the effect of firm size and business risk on debt policy with profitability as a moderating variable. The proxy for company size uses Natural Logarithms (Total Assets), business risk uses net income to total equity, and profitability uses Return On Assets (ROA). The population used in this study is property and real estate companies listed on the Indonesia Stock Exchange for the 2018-2020 period. This research uses quantitative research with multiple linear regression model. By using purposive sampling, 55 companies were found that met the criteria as research samples. This study uses secondary data obtained from the Indonesia Stock Exchange and sample company websites. The analytical method used in this study is Moderated Regression Analysis (MRA) using the Eviews 9 application. The results of this study indicate that company size and business risk have a positive and significant effect on debt policy. Profitability as a moderating variable is proven that profitability weakens the relationship between firm size and debt policy, while profitability strengthens the relationship between business risk and debt policy.

 

Downloads

Download data is not yet available.

References

Bahri, S. (2017). Effect of Managerial Ownership, Dividend Policy, Profitability, Firm Size and Free Cash Flow on Debt Policy. Journal of Theoretical and Applied Accounting Research, 2(2). 1-21.

Jensen, M. & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4). 305-360.

Karina, F. & Khafid, M. (2015). Determinants of Profitability in Property and Real Estate Companies Go Public in Indonesia. Journal of Accounting Dynamics, 7(1), 1-8.

Paryanti, P. & Mahardhika, A. S. (2020). Debt Policy With Agency Theory Approach In Property And Real Estate Companies. Journal Feb Unmul.16(1), 327-338.

Saputri, S. M., Hariyanti, W., & Harjito, Y. (2020). Analysis of Factors Affecting Debt Policy. Indonesian Accounting and Finance Periodic, 5(2), 83-96.

Sheisarvian, R. M., Sudjana, N., & Saifi, M. (2015). Effect of Managerial Ownership, Dividend Policy and Profitability on Debt Policy. Journal of Business Administration, 22(1), 1-9.

Zurriah, R. & Sembiring, M. (2018). Effect of Free Cash Flow and Managerial Ownership on Debt Policy. Journal of Accounting and Business: Journal of Accounting Studies Program, 4(2), 31-39.

Downloads

Published

2022-06-24

How to Cite

Shifa, S. H., Ismawati, I., Mukhtar, M., Soleha, N., & Indriana, I. (2022). Firm Size and Business Risk on Debt Policy with Profitability as Moderating Variables. Journal of Applied Business, Taxation and Economics Research, 1(5), 479–493. https://doi.org/10.54408/jabter.v1i5.92

Issue

Vol. 1 No. 5 (2022): June 2022

Section

Articles

License

Copyright (c) 2022 Shifa Hanida Shifa, Iis Ismawati, Mukhtar, Nurhayati Soleha, Ina Indriana

Creative Commons License

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

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

Most read articles by the same author(s)