Analysis of the Influence of Capital Structure, Ownership Structure, and Good Corporate Governance on Financial Performance at CV. Lestari Jaya Purnama

Jesita Almanna; Etty Harya Ningsi; Selvi Aristantya

doi:10.55606/bijmt.v6i1.6779

Authors

Jesita Almanna Universitas Battuta
Etty Harya Ningsi Universitas Battuta
Selvi Aristantya Universitas Battuta

DOI:

https://doi.org/10.55606/bijmt.v6i1.6779

Keywords:

Capital Structure, Ownership Structure, Good Corporate Governance, Financial Performance, Multiple Linear Regression

Abstract

This study aims to examine the effect of capital structure, ownership structure, and good corporate governance (GCG) on the financial performance of CV. Lestari Jaya Purnama. Financial performance is a crucial indicator of a company’s sustainability and reflects the effectiveness of managerial decision-making. This research employs a quantitative approach with an associative design to analyze the relationships among variables. Primary data were collected through structured questionnaires distributed to employees who are directly involved in financial and managerial activities within the company. The data were analyzed using multiple linear regression to determine both partial and simultaneous effects of the independent variables on financial performance.The findings reveal that capital structure has a positive and significant effect on financial performance, indicating that an optimal proportion of debt and equity can enhance company profitability and efficiency. Ownership structure shows a negative effect on financial performance, suggesting that certain ownership compositions may reduce managerial flexibility and decision-making effectiveness. Meanwhile, good corporate governance has a positive and significant effect on financial performance, demonstrating that transparency, accountability, responsibility, independence, and fairness contribute to better financial outcomes. Furthermore, the simultaneous test results indicate that capital structure, ownership structure, and GCG collectively have a positive and significant influence on financial performance. These findings imply that strengthening governance practices and optimizing capital decisions are essential strategies for improving the financial performance of CV. Lestari Jaya Purnama.

References

Adhitya, E., & Santioso, L. (2020). The Effect of Profitability, Liquidity, Size, Asset Structure, and Earnings Volatility on Capital Structure. Tarumanagara Multiparadigma Accounting Journal, 2(1), 348-357.

Anggraini, R., & Fidiana, F. (2021). The Effect of Good Corporate Governance Implementation and Capital Structure on Company Value. Journal of Accounting Science and Research (JIRA) , 10 (7).

Ayu, TN, & Napisah, N. (2024). The Influence of Good Corporate Governance, Intellectual Capital, and Accounting Conservatism on Financial Performance. Compartment: Scientific Journal of Accounting, 22(1), 65-85.

Asang, MKD, Retnowati, N., & Noviandari, I. (2017). The Influence of Corporate Governance on the Financial Performance of Manufacturing Companies Listed on the IDX. Branchmark Management Journal , 3 (3), 620-635.

Bianca, SL, & Hwihanus, H. (2024). The Influence of Macro Fundamentals, Capital Structure, Ownership Structure, Financial Performance, Company Characteristics with GCG as a Moderating Variable on Company Value in Mining Sub-Sector Companies Listed on the IDX. Accounting , 3 (1), 141-158.

Dewanti, M. (2022). The influence of good corporate governance, ownership structure, and capital structure on firm value with profitability as an intervening variable: A study of state-owned enterprises listed on the Indonesia Stock Exchange (IDX) 2016-2020 (Doctoral dissertation, Maulana Malik Ibrahim State Islamic University).

Dzaky, TH, Abdurohman, MZ, Christian, J., Rasyid, RA, & Sukma, SI Effect of Good Corporate Governance on Financial Performance.

Ellyn, E., Silvia, R., Rahmi, NU, & Lubis, IT (2024). The Effect of Profitability, Cash Holding, Bonus Plan, Auditor Reputation, and Ownership Structure on Income Smoothing in Companies Engaged in the Property and Real Estate Sector in 2019-2022. SCIENTIFIC JOURNAL OF REFLECTION: Economic, Accounting, Management and Business , 7 (4), 1293-1303.

Ellyabraham, Y., Wibowo, NM, & Susanto, H. (2023). The Influence of Intellectual Capital and Ownership Structure on Company Value with Financial Performance as an Intervening Variable. Student Journal: Journal of Scientific Reasoning and Student Research, 5(1), 13-18.

Erawati, T., Wardani, DK, & Hafil, A. (2022). THE EFFECT OF CONSERVATISM, CAPITAL STRUCTURE AND LIQUIDITY ON FINANCIAL PERFORMANCE (Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange in 2017-2019). AKURAT | Accounting Scientific Journal, FE UNIBBA , 13 (1), 98-110.

Fara, L. 2020. Institutional Ownership, Capital Structure, Investment Decisions, and Financial Performance on Firm Value. Journal of Accounting Science and Research (JIRA), 9(3): 1-20

Firdaus, FF, & Dewayanto, T. (2024). THE EFFECT OF CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE ON FINANCIAL PERFORMANCE (Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange in 2020-2022). Diponegoro Journal of Accounting, 13(3). (Faiq Fadhil)

Fitriani, N. (2022). The Effect of Ownership Structure, Free Cash Flow, Leverage, and Liquidity on Dividend Policy in Property & Real Estate Companies for the 2016-2020 Period (Doctoral dissertation, UNIVERSITAS PGRI ADI BUANA SURABAYA).

Mai, MU (2014). CORPORATE GOVERNANCE MECHANISMS AND CAPITAL STRUCTURE MODERATED BY COMPANY SIZE AND THEIR RELATIONSHIP WITH PROFITABILITY. Indonesian Journal of Business Accounting and Banking , 22 (2).

Gemilang, MR, & Wiyono, S. (2022). Good Corporate Governance, Capital Structure, Leverage, and Company Size on Financial Performance. Trisakti Journal of Economics , 2 (2), 529-542.

Handayani, N. (2022). The Influence of Corporate Governance Mechanisms and Ownership Structure on Company Financial Performance. Journal of Accounting Science and Research (JIRA) , 11 (3).

Hidayat, TA, & Sugiyono, S. (2017). The Influence of Capital Structure, Dividend Policy, and Profitability on Firm Value in Manufacturing Companies. Journal of Management Science and Research (JIRM) , 6 (5).

Indarto, I. (2023). Analysis of the Influence of Good Corporate Governance, Ownership Structure, and Corporate Social Responsibility on Capital Intensity (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector Listed on the IDX in 2017-2020) (Doctoral dissertation, CODEUNIVERSITAS041060# UniversitasBuddhiDharma).

Irmalasari, E., Gurendrawati, E., & Muliasari, I. (2022). The Effect of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) on Company Value with Company Size and Leverage as Control Variables. Journal of Accounting, Taxation and Auditing , 3 (2), 443-460.

Istan, M. (2018). Political support, capital structure, and financial distress on company performance in Indonesia (Doctoral dissertation, University of Bengkulu).

Kartini, K., & Arianto, T. (2008). Ownership structure, profitability, asset growth and company size on capital structure in manufacturing companies. Journal of Finance and Banking , 12 (1), 11-21.

KHOIRUNNISAA'ARRIBAATH, SALMA(2021) THE EFFECT OF INTELLECTUAL CAPITAL, GOOD CORPORATE GOVERNANCE AND CAPITAL STRUCTURE ON COMPANY VALUE WITH FINANCIAL PERFORMANCE AS AN INTERVENING VARIABLE.

Laksana, IF, & Widyawati, D. (2016). The influence of share ownership, dividend policy, tangibility, size, and profitability on capital structure. Journal of Accounting Science and Research (JIRA) , 5 (4).

Longdong, NGF, & Tawas, HN (2021). Analysis of Economic Value Added (EVA) and Market Value Added (MVA) as a Financial Performance Measurement Tool at PT Indofood Sukses Makmur TBK. EMBA Journal: Journal of Economics, Management, Business, and Accounting Research, 9(4), 1153–1164.

LUBIS, IT, NINGSI, EH, ARISTANTYA, S., RIZKI, IH, & KAUR, M. (2020). The Effect of Firm Size, Liquidity, and Managerial Ownership on Dividend Payout Ratio in Banking Companies Listed on the Indonesia Stock Exchange (IDX). Simantek Scientific Journal , 4 (2), 232-241.

Lubis, IT (2023). Factors affecting good corporate governance at pt. Lotte shopping Indonesia Center Point Medan. Enrichment: Journal of Management , 12 (6), 5097-5104.

May Friscia, S., Syahputra, O., & Aristantya, S. (2024). The Influence of Internal Control Systems and Capital Structure on the Financial Performance of PT. Deli Jaya Samudera.

Melinda, N., Yusmaniarti, Y., & Yusnita, Y. (2024). LITERATURE REVIEW: THE EFFECT OF FUNDING DECISIONS WITH GOOD CORPORATE GOVERNANCE AS A MODERATING VARIABLE ON COMPANY VALUE. Journal of Accounting, Finance, Taxation and Corporate Governance , 1 (4), 388-399.

Muna, MI (2023). The Influence of Liquidity, Company Size, Asset Structure, and Profitability on Capital Structure in Manufacturing Companies Listed on the Indonesia Stock Exchange. Select Management: Journal of Business & Management Students , 2 (2), 200-215.

Mulyani, S., Wijayanti, A., & Masitoh, E. (2018). The influence of corporate governance on tax avoidance (mining companies listed on the IDX). Airlangga Journal of Accounting and Business Research , 3 (1), 322-340.

Margaret, E., & Daljono, D. (2023). The Effect of Good Corporate Governance on Company Financial Performance (An Empirical Study of State-Owned Enterprises Listed on the Indonesia Stock Exchange for the 2017-2021 Period). Diponegoro Journal of Accounting, 12(4). (Ermalyani)

Marwanta, GA (2020). The Influence of Good Corporate Governance and Capital Structure on Company Financial Performance (An Empirical Study of Food and Beverage Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) in 2014-2018) (Doctoral dissertation, YKPN Yogyakarta College of Economics). (Galang Alam)

Muslimah, DN, Suhendro, S., & Masitoh, E. (2020). Factors influencing capital structure in property and real estate companies listed on the IDX. Scientific Journal of Batanghari Jambi University, 20(1), 195-200.

Ningsi, EH, Manurung, L., Ardillah, Y., & Ramadhani, S. (2022). Good Corporate Governance Model on Corporate Financial Performance in the Era of the Digital Revolution on the Indonesia Stock Exchange. Journal of Economics, Finance And Management Studies , 5 (08), 2182-2190.

Ningsi, EH, & Yanti, TA (2024). FINANCIAL MANAGEMENT TRAINING TO IMPROVE THE ABILITY TO MANAGE DEBT AND INVESTMENT AMONG THE COMMUNITY. COMMUNITY SERVICE JOURNAL , 14 (2), 265-268.

Ningsih, YI, & Widyawati, N. (2018). The Effect of Capital Structure and Company Size on Profitability in Food and Beverage Companies on the IDX. Journal of Management Science and Research (JIRM) , 7 (3).

Ningrum, HC, Nasution, Z., & Setiawan, S. (2024). The Effect of Good Corporate Governance (GCG), Premium Growth, and Claims Expenses on Profitability in Sharia Insurance. Pelita Bangsa Journal of Sharia Economics, 9(02), 356-368.

Oktiyaningrum, PR, & Taman, A. (2022). THE EFFECT OF GCG IMPLEMENTATION AND OWNERSHIP STRUCTURE ON FINANCIAL PERFORMANCE IN MANUFACTURING COMPANIES LISTED ON THE IDX IN THE 2017-2020 PERIOD. Profita Journal: Accounting Science Studies , 10 (5), 53-66.

Paujiah, AUS (2020). The Quality of Company Financial Reports is Influenced by Good Corporate Governance and Human Resource Competence (Case Study at PT. Asuransi Jiwasraya (Persero) Bandung City) (Doctoral dissertation, Universitas Komputer Indonesia).

Petta, BC, & Tarigan, J. (2017). The effect of institutional ownership on financial performance through capital structure as an intervening variable in manufacturing companies listed on the Indonesia Stock Exchange (IDX). Business Accounting Review , 5 (2), 625-636.

Putri, DAN, Wijaya, AL, & Murwani, J. (2023, September). THE EFFECT OF SHARE OWNERSHIP STRUCTURE, CAPITAL STRUCTURE, AND PROFITABILITY ON COMPANY VALUE WITH AN INDEPENDENT BOARD OF COMMISSIONERS AS A MODERATING VARIABLE. In SIMBA: Seminar on Management, Business, and Accounting Innovation (Vol. 5).

Pratama, MR, & Fidiana, F. (2024). THE EFFECT OF GOOD CORPORATE GOVERNANCE AND CAPITAL STRUCTURE ON COMPANY VALUE. Journal of Accounting Science and Research (JIRA) , 13 (2).

Rahmawati, AD (2015). The Influence of Company Size, Profitability, Capital Structure, and Investment Decisions on Company Value (A Study of Property, Real Estate, and Building Construction Companies Listed on the Indonesia Stock Exchange (IDX) for the 2010-2013 Period) (Doctoral dissertation, Brawijaya University).

Robiyanto, R., Nafiah, I., Harijono, H., & Inggarwati, K. (2020). The effect of profitability on the value of hotel and tourism companies with capital structure as an intervening variable. Asian Journal of Business and Economics, 14(1), 46-57.

Rasubala, TM, & Van Rate, P. (2020). THE EFFECT OF CAPITAL STRUCTURE, OWNERSHIP STRUCTURE AND GOOD CORPORATE GOVERNANCE ON THE PROFITABILITY OF PHARMACEUTICAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE. EMBA Journal: Journal of Economics, Management, Business and Accounting Research , 8 (1).

Rofiq, A., Bakhri, S., & Jaelani, A. (2024). Factors Influencing the Composite Stock Price Index on the Indonesian Stock Exchange (BEI) for the 2013–2022 Period. Tirtayasa Ekonomika , 19 (1), 42–55.

Romdhoni, MT, & Kharisma, AS (2023). The Effect of Profitability and Liquidity on the Capital Structure of Consumer Goods Companies on the Indonesia Stock Exchange in 2020-2022. JACFIR: Journal of Accounting and Financial Research , 1 (1), 1-10.

Sari, AN, & Oetomo, HW (2016). The influence of profitability, liquidity, asset growth, and company size on capital structure. Journal of Management Science and Research (JIRM) , 5 (4).

Sujatmiko, W. (2019). The Effect of ROE, ROA, and EPS on Stock Prices in Banking Companies Listed on the Indonesia Stock Exchange (Doctoral dissertation, Islamic University of Indonesia).

Sunaryo, D. (2020). The Effect of Capital Structure and Profitability on Company Value in the Food and Beverage Sector Listed on the Indonesia Stock Exchange (IDX) for the 2013-2018 Period. Journal of Vocational Economics , 3 (1), 18-35.

Suryono, AI (2021). The Influence of Family Context, Education, and Obstacles in Starting a Business on Entrepreneurial Intentions (A Study of UINSU Students Majoring in Islamic Economics, Class of 2016) (Doctoral dissertation, State Islamic University of North Sumatra).

TH, RW, & Dyarini, D. (2022). The Effect of Capital Structure and Ownership Structure on Company Performance (Empirical Study on Technology Companies 2019–2021). Competitive Accounting Journal, 5(3), 343-350.

Utomo, B., Ekasari, K., & Ismanu, S. (2018, October). Analysis of the Influence of Capital Structure, Dividend Policy, Tax Avoidance, Liquidity, and Profitability on Company Value (Consumer Goods Industry Sector 2012-2016 Period). In Proceedings of the National Seminar on Accounting, Management, and Finance (Vol. 3, No. 1).

Utomo, SA (2022). The Influence of Asset Structure, Company Size, Sales Growth, and Business Risk on Capital Structure (Doctoral dissertation, Hayam Wuruk Perbanas University, Surabaya).

Yopie, S., & Lim, A. (2021). The influence of family management, generation, and ownership structure on the performance of family companies listed on the Indonesia Stock Exchange. Trisakti Accounting Journal , 8 (2), 249-274.

Wahyudi, U., & Pawestri, HP (2011). Ownership Structure on Company Value: With Financial Decisions as an Intervening Variable. Journal of Actual Accounting , 1 (2), 61-70.