The Optimization of Capital Structure in Maximizing Profit and Corporate Value
The purpose of this research was to determine the optimal capital structure which could maximize profits and corporate value. The used method was quantitative descriptive analysis. Moreover, the data used was secondary data in the Jakarta Islamic Index (JII) from 2011 to 2015. The results of this re...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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Bina Nusantara University
2017-05-01
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| Series: | Binus Business Review |
| Subjects: | |
| Online Access: | https://journal.binus.ac.id/index.php/BBR/article/view/1678 |
| _version_ | 1797714675541999616 |
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| author | Kharisya Ayu Effendi |
| author_facet | Kharisya Ayu Effendi |
| author_sort | Kharisya Ayu Effendi |
| collection | DOAJ |
| description | The purpose of this research was to determine the optimal capital structure which could maximize profits and corporate value. The used method was quantitative descriptive analysis. Moreover, the data used was secondary
data in the Jakarta Islamic Index (JII) from 2011 to 2015. The results of this research show that companies which have optimal capital structure are in line with the trade-off theory models. The capital structure is optimal if the
debt levels are to a certain extent so that the corporate value will increase. However, if the debt limit passes the certain degree, profit and corporate value will decrease. Meanwhile, pecking order theory in this research does
not conform and cannot be said to be optimal because of the low debt level describing the opposite result with the theory as low profits. |
| first_indexed | 2024-03-12T07:55:27Z |
| format | Article |
| id | doaj.art-08317681603f410193002898c464e512 |
| institution | Directory Open Access Journal |
| issn | 2087-1228 2476-9053 |
| language | English |
| last_indexed | 2024-03-12T07:55:27Z |
| publishDate | 2017-05-01 |
| publisher | Bina Nusantara University |
| record_format | Article |
| series | Binus Business Review |
| spelling | doaj.art-08317681603f410193002898c464e5122023-09-02T20:15:18ZengBina Nusantara UniversityBinus Business Review2087-12282476-90532017-05-0181414710.21512/bbr.v8i1.16782995The Optimization of Capital Structure in Maximizing Profit and Corporate ValueKharisya Ayu Effendi0Widyatama UniversityThe purpose of this research was to determine the optimal capital structure which could maximize profits and corporate value. The used method was quantitative descriptive analysis. Moreover, the data used was secondary data in the Jakarta Islamic Index (JII) from 2011 to 2015. The results of this research show that companies which have optimal capital structure are in line with the trade-off theory models. The capital structure is optimal if the debt levels are to a certain extent so that the corporate value will increase. However, if the debt limit passes the certain degree, profit and corporate value will decrease. Meanwhile, pecking order theory in this research does not conform and cannot be said to be optimal because of the low debt level describing the opposite result with the theory as low profits.https://journal.binus.ac.id/index.php/BBR/article/view/1678optimalization, capital structure, profit, corporate value |
| spellingShingle | Kharisya Ayu Effendi The Optimization of Capital Structure in Maximizing Profit and Corporate Value Binus Business Review optimalization, capital structure, profit, corporate value |
| title | The Optimization of Capital Structure in Maximizing Profit and Corporate Value |
| title_full | The Optimization of Capital Structure in Maximizing Profit and Corporate Value |
| title_fullStr | The Optimization of Capital Structure in Maximizing Profit and Corporate Value |
| title_full_unstemmed | The Optimization of Capital Structure in Maximizing Profit and Corporate Value |
| title_short | The Optimization of Capital Structure in Maximizing Profit and Corporate Value |
| title_sort | optimization of capital structure in maximizing profit and corporate value |
| topic | optimalization, capital structure, profit, corporate value |
| url | https://journal.binus.ac.id/index.php/BBR/article/view/1678 |
| work_keys_str_mv | AT kharisyaayueffendi theoptimizationofcapitalstructureinmaximizingprofitandcorporatevalue AT kharisyaayueffendi optimizationofcapitalstructureinmaximizingprofitandcorporatevalue |