Effect of Growth, Liquidity, Business Risk and Asset Usage Activity, Toward Capital Structure, Financial Performance and Corporate Value (Study at Manufacturing Companies Listed in Indonesia Stock Exchange in 2010-2015)

Abstract

This research is motivated by the thought that there is contradiction in the capital structure theory and empirical findings about the previous peneltian funding policy that can improve financial performance and corporate value. Analysis techniques, using the Generalized Structured Component Analysis (GSCA). Data sampled 84 companies listed in Indonesia Stock Exchange in 2010 to 2015.This study aims to examine and explain the effect of the company's growth, liquidity, business risk, and asset usage activity on the capital structure, financial performance and corporate value. Test and explain the effect of capital structure on the financial performance and corporate value. Test and explain the effect of the financial performance of the corporate value.The findings of this study is the company's growth has a significant positive impact on capital structure, financial performance, and corporate value. Liquidity significantly negatively impacts the capital structure, and is positively positive on the financial performance and firm value. Business risk positively affects the capital structure, and negatively the financial performance and firm value. Activity usage of assets has a significant negative effect on capital structure, and significant positive to financial performance dap corporate value. The capital structure has a significant negative effect on financial performance, and is significantly positive to firm value. Financial performance has a significant positive effect on firm value. The study concludes that company growth, liquidity, business risk, and asset usage activities can determine the capital structure, financial performance and firm value. Therefore, the company's management and financial analysts can examine the company's growth variables, liquidity and asset usage activities, capital structure, business risk and financial performance to predict the future value of the company.

Keywords: Growth, Liquidity, Business Risk, Activities, Capital Structure, Financial Performance, Corporate Values.