The Influence of Macroeconomic and Microeconomic Variables on

• Main Author: Ferina Nurlaily
• Other Authors: Wen-Hsi Lydia Hsu, PhD
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/49441260867874984093

碩士 === 國立屏東科技大學 === 企業管理系所 === 100 === This research investigated the influence of macroeconomic and microeconomic variable on capital structure and financial performance of Indonesia Manufacturing Companies during period 2009-2011. Using Partial Least Square Method, the result showed that macroeconomic variable has significant positive influence on capital structure. Indicators that valid to measure macroeconomic variable are economic growth and inflation. While, capital structure was measured by total debt ratio and long term debt ratio. Negative significant influence appeared between microeconomic variable and capital structure. Microeconomic variable was measured by sales growth and company size as its indicator. However, the influence of capital structure on financial performance showed significantly positive. Financial performance was measured through Return on Assets (ROA) and Net Profit Margin (NPM) as its indicator. While the result also showed that macroeconomic variable and microeconomic variable found not significantly affect the company’s financial performance.