The Impact of Capital Structure and Macroeconomic Conditions on the Performance and Growth of Basic Material Companies on the Main Board of the Indonesia Stock Exchange (IDX) in the 2021-2024 Period
DOI:
https://doi.org/10.24256/kharaj.v8i1.9439Keywords:
Capital Structure, Financial Performance, Macro Fundamentals, Company SizeAbstract
This study aims to analyze the effect of Capital Structure on Company Size with a focus on the role of leverage in driving operational scale expansion. The type of research used is quantitative research with SEM-PLS 4.0 analysis tools to test the relationship between Macro Fundamentals and Capital Structure on Financial Performance and Company Size. The research findings show that Macro Fundamentals have a significant positive influence on Financial Performance and Company Size. Capital Structure has a positive and significant influence on Company Size and Financial Performance, where increasing the proportion of debt as part of the capital structure effectively drives the growth of the company's production capacity, market, and workforce. The study emphasizes the importance of wise capital structure management as a key strategy in supporting long-term growth and maintaining company competitiveness in a competitive economic environment.
References
Adrianto, ES (2024). The Influence of Macroeconomics, World Oil Prices, and Financial Ratios on Stock Prices of Construction Companies in Indonesia. Journal of Trends Economics and Accounting Research, 4(3), 706. https://doi.org/10.47065/jtear.v4i3.1127
Agustin, ED, Made, A., & Retnasari, A. (2022). The Effect of Capital Structure, Company Size, and Intellectual Capital on Company Value, with Financial Performance as an Intervening Variable (A Case Study of Manufacturing Companies Listed on the IDX in the 2017–2019 Period). Indonesian Journal of Accounting, 11(1), 37. https://doi.org/10.30659/jai.11.1.37-58
Ambarwati, ED, Manurung, AH, Widjanarko, W., Khan, MA, & Fikri, A. (2024). Determinants of Capital Structure of Manufacturing Companies in Indonesia. JOURNAL OF ECONOMINA , 3 (2), 329. https://doi.org/10.55681/economina.v3i2.1211
Anastasia, MD, & Munari, M. (2021). THE EFFECT OF INTERNAL, EXTERNAL, AND DIGITAL BANK TRANSACTION SERVICES FACTORS ON PROFITABILITY. E-Journal of Management, Udayana University , 10 (6), 607. https://doi.org/10.24843/ejmunud.2021.v10.i06.p05
Anrizal, SY, Egim, AS, & Ramadhani, G. (2023). The Impact of Asset Structure, Firm Size, and Company Growth on Capital Structure in Manufacturing Companies. Ecogen Journal, 6(2), 222. https://doi.org/10.24036/jmpe.v6i2.14559
Ariani, MF, & Amaniyah, E. (2022). The Influence of Capital Structure, Company Growth, and Company Financial Performance on Company Value in the Food and Beverage Sub-Sector on the Indonesia Stock Exchange. Journal of Management Science Studies (JKIM) , 1 (3). https://doi.org/10.21107/jkim.v1i3.13473
Astadewi, C., & Pramesti, M. (2022). THE EFFECT OF COUNTRY-SPECIFIC FACTORS ON MACROECONOMIC INDICATORS ON CAPITAL STRUCTURE DECISIONS OF THE PROCESSING INDUSTRY SECTOR COMPANIES IN INDONESIA 2015-2019 PERIOD. DeReMa (Development Research of Management) Jurnal Manajemen , 17 (1), 31. https://doi.org/10.19166/derema.v17i1.4569
Baghaskoro, RF, Banani, A., & Najmudin, N. (2021). The Effect of Profitability, Tangible Assets, Company Size, Growth, and Company Age on Company Capital Structure (An Empirical Study of Property and Real Estate Companies Listed on the Indonesia Stock Exchange). Bahtera Inovasi , 3 (2), 119. https://doi.org/10.31629/bi.v3i2.3330
Dinda, BAP, Putri, PAK, Marcellina, LV, Olivianti, R., & Suparta, IM (2024). THE EFFECT OF MACRO FUNDAMENTALS AND CAPITAL STRUCTURE WITH EARNINGS MANAGEMENT AS AN INTERVENING VARIABLE ON FINANCIAL PERFORMANCE IN MANUFACTURING COMPANIES LISTED IN THE LQ-45 INDEX OF THE INDONESIA STOCK EXCHANGE. REMITTANCE JOURNAL OF FINANCIAL ACCOUNTING AND BANKING, 5(2), 52. https://doi.org/10.56486/remittance.vol5no2.559
Faradila, S., & Effendi, KA (2023). Analysis of Financial Performance and Macroeconomics on Firm Value. Journal of Management, 27(2), 276. https://doi.org/10.24912/jm.v27i2.1255
Fauzi, AF, & Puspitasari, E. (2021). THE EFFECT OF CAPITAL STRUCTURE, COMPANY SIZE, LIQUIDITY, AND ASSET GROWTH ON THE FINANCIAL PERFORMANCE OF COMPANIES LISTED IN THE JAKARTA ISLAMIC INDEX (JII) 2018-2020 PERIOD. EDUNOMIKA SCIENTIFIC JOURNAL, 5(2). https://doi.org/10.29040/jie.v5i2.2869
Fitriyani, AI, & Anik, S. (2025). The Effect of Capital Structure, Liquidity, and Profitability on Firm Value in Manufacturing Companies Listed on the Indonesia Stock Exchange (IDX) in 2021-2023. Al-Zayn. , 3 (2), 893. https://doi.org/10.61104/alz.v3i2.1173
Hamzah, EI (2021). THE EFFECT OF COMPANY SIZE, ASSET STRUCTURE, AND PROFITABILITY ON CAPITAL STRUCTURE (Case Study of Manufacturing Companies Listed on the Indonesia Stock Exchange). Journal of Islamic Economics and Business , 3 (1), 54. https://doi.org/10.24239/jiebi.v3i1.52.54-78
Handayani, N., & Rahyuda, H. (2025). THE EFFECT OF CAPITAL STRUCTURE, PROFITABILITY, AND COMPANY SIZE ON COMPANY VALUE IN THE FOOD AND BEVERAGES SUB-SECTOR. E-Journal of Management, Udayana University , 14 (7), 480. https://doi.org/10.24843/ejmunud.2025.v14.i7.p01
Hasti, WW, Maryani, M., & Makshun, A. (2022). The Effect of Leverage, Capital Structure, and Company Size on Financial Performance in Mining Sector Companies. Management and Business Accounting Review, 2(2), 139. https://doi.org/10.35912/rambis.v2i2.1544
Heliani, H., & Elisah, S. (2022). The Effect of Profitability, Macroeconomics, and Firm Size on Financial Distress with Firm Value as a Moderating Variable. Owner , 6 (4), 4142. https://doi.org/10.33395/owner.v6i4.1080
Ibrahim, F., Hadiwibowo, I., & Azis, MT (2024). The Effect of Firm Growth, Investment Opportunity Set, Asset Structure, and Company Size on Debt Policy. Monex Journal Research Accounting Politeknik Tegal, 13(1), 55. https://doi.org/10.30591/monex.v13i01.5869
Junieta, M., & Setyawan, IR (2022). Determinants of Capital Structure of Manufacturing Companies on the Indonesia Stock Exchange for the 2015-2019 Period. Journal of Business Management and Entrepreneurship , 6 (4), 433. https://doi.org/10.24912/jmbk.v6i4.19344
Kusuma, M., & Saputra, BM (2022). The Influence of Macroeconomic Fundamentals on Other Comprehensive Income and Comprehensive Income Persistence. Journal of Accounting Studies, 6(1), 145. https://doi.org/10.33603/jka.v6i1.6239
Kriwidianingsih, A., & Nugroho, P. (2021). The Influence of Capital Structure, Liquidity, Company Growth, and Profitability on Company Value (A case study of a Coal Mining Company in the Subsector Listed on the IDX). Journal of Management Science Studies (JKIM) , 1 (2). https://doi.org/10.21107/jkim.v1i2.11598
Liantanu, A., Yanti, LD, & Oktari, Y. (2023). The Effect of Interest Rates, Rupiah Exchange Rates, Inflation, and Gross Domestic Product Growth on the Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange for the 2014-2021 Period. eCo-Buss , 5 (3), 1081. https://doi.org/10.32877/eb.v5i3.698
Lumajang, STIEWG, Sholihin, MR, Rizki, VL, Abrori, I., Sholihin, MR, Rizki, VL, & Abrori, I. (2021). The Effect of Capital Expenditure, Company Size, Profitability, and Company Value on Capital Structure (Empirical Study of LQ 45 Companies on the Indonesia Stock Exchange) . 539. https://doi.org/10.32528/psneb.v0i0.5207
M, PS, Irawati, N., & Muluk, C. (2022). The Effect of Macroeconomic Variables on Kompas 100 Index on the Indonesia Stock Exchange. In Advances in economics, business and management research/Advances in Economics, Business and Management Research (p. 230). Atlantis Press. https://doi.org/10.2991/978-94-6463-008-4_31
Madyan, M., Setyowati, RG, & Setiawan, WR (2021). Education Level of the Board of Directors and Financial Performance of Go Public Banks at the Indonesia Stock Exchange. Journal of Theory and Applied Management , 14 (3), 264. https://doi.org/10.20473/jmtt.v14i3.31210
María, I., & Widjaja, I. (2023). The effect of profitability, company size, and liquidity on company value with capital structure as a mediating variable in food and beverage (F&B) companies on the Indonesia Stock Exchange. Journal of Business Management and Entrepreneurship , 7 (1), 50. https://doi.org/10.24912/jmbk.v7i1.22469
Missaoui, I., & Alduraywish, Y. (2023). Capital Structure and Macroeconomic Determinants in Emerging Countries: A Panel Quantile Regression Approach. International Journal of Economics and Finance , 15 (12), 68. https://doi.org/10.5539/ijef.v15n12p68
Nasihin, I., & Dewi, SK (2021). The Effect of Financial Ratios and Good Corporate Governance on Basic Earning Power with Economic Growth as a Moderating Variable. E-Journal of Accounting , 31 (8), 2100. https://doi.org/10.24843/eja.2021.v31.i08.p17
Ningrum, EY, & Khairunnisa, K. (2022). THE EFFECT OF COMPANY SIZE, SALES GROWTH, PROFITABILITY, AND LIQUIDITY ON CAPITAL STRUCTURE. Journal of Economic Research, 2(1), 28. https://doi.org/10.23969/jrie.v2i1.24
Nugraha, NM, Susanti, N., & Setiawan, MR (2021). The Effect of Capital Structure, Working Capital Turnover, and Company Size on Company Value. Owner , 5 (1), 208. https://doi.org/10.33395/owner.v5i1.383
Nurhaliza, N., & Azizah, SN (2023). ANALYSIS OF CAPITAL STRUCTURE, MANAGERIAL OWNERSHIP, COMPANY GROWTH, AND PROFITABILITY ON COMPANY VALUE. Journal of Financial and Accounting Research , 9 (1). https://doi.org/10.25134/jrka.v9i1.7593
Oktaviana, A., & Taqwa, S. (2021). The Effect of Profitability, Business Risk, Growth of Assets, and Operating Leverage on Capital Structure. JOURNAL OF ACCOUNTING EXPLORATION , 3 (2), 470. https://doi.org/10.24036/jea.v3i2.375
Prayogo, BAC, Indarwanta, D., & Suratna, S. (2022). The Effect of Ownership Structure and Capital Structure on Financial Performance and Its Impact on Company Value: A Study of Consumer Non-Cyclical Companies Listed on the Indonesia Stock Exchange in 2016-2020. Paradigma Journal of Social, Political and Policy Issues , 26 (2), 61. https://doi.org/10.31315/paradigma.v26i2.7354
Priambudi, IB, & Wijayati, F. (2023). The effect of profitability, capital structure, company size, and dividend policy on company value. Journal of Economics and Business Research (JUEBIR), 2(1), 14. https://doi.org/10.22515/juebir.v2i1.7288
Purba, NCL, & Rachman, AA (2024). The Effect of Profitability, Liquidity, and Sales Growth on the Capital Structure of Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2018-2022 Period. Journal of Economic Business and Accounting (COSTING) , 7 (5), 3606. https://doi.org/10.31539/costing.v7i5.12125
Putri, IS, & Amalia, NR (2024). COMPANY INVESTMENT CAPITAL STRUCTURE WITH ENVIRONMENTAL DISCLOSURE AS A MODERATING VARIABLE. Solusi , 22 (2), 197. https://doi.org/10.26623/slsi.v22i2.9011
Rosmawati, W., Harahap, I., Asry, S., Mary, H., & Indriyenni, I. (2023). The Influence of Financial Management Policies on Company Value. Jesya (Journal of Economics & Sharia Economics) , 6 (1), 733. https://doi.org/10.36778/jesya.v6i1.1010
Sa'diyah, C., & Hariyono, A. (2022). Capital Structure, Firm Size, Firm Growth, and Tax Avoidance on Firm Value. MAXIMUM, 12(1), 27. https://doi.org/10.26714/mki.12.1.2022.27-41
Sihombing, LJ, & Purba, ELD (2021). THE EFFECT OF CAPITAL STRUCTURE, COMPANY SIZE, AND LEVERAGE ON COMPANY FINANCIAL PERFORMANCE IN MANUFACTURING COMPANIES (Case Study of Food and Beverage Companies Listed on the IDX in 2018-2019). JAKPI - Indonesian Journal of Financial Accounting & Taxation, 9(2). https://doi.org/10.24114/jakpi.v9i2.30125
Sriwiyanti, E., Damanik, EOP, & Martina, S. (2021). Factors Affecting the Financial Performance of Property and Real Estate Companies on the IDX. Ecodemica Journal, Journal of Economics, Management, and Business, 5(2), 184. https://doi.org/10.31294/eco.v5i2.11179
Sulistiyo, AB, Maharani, B., Aprillianto, B., Widiyanti, NW, & Miqdad, M. (2022). Explanation Study of Agro-Industrial Firm Financial Performance Based on Capital Structure and Firm Strategy in the COVID-19 Pandemic. Airlangga Journal of Accounting and Business Research , 7 (2), 1343. https://doi.org/10.20473/jraba.v7i2.39888
Supriandi, & Masela, MY (2023). The Effect of Capital Structure, Profitability, and Market Liquidity on Firm Value in the Manufacturing Industry in West Java. Sanskara Accounting and Finance , 1 (3), 142. https://doi.org/10.58812/sak.v1i03.109
Utama, BP, Sastrodiharjo, I., & Mukti, AH (2023). The Influence of Corporate Governance Mechanisms on Corporate Financial Performance: An Empirical Study of Non-Consumer Cyclical Companies Listed on the Indonesia Stock Exchange for the 2019-2021 Period. Journal of Financial Accounting and Management, 4(4), 249. https://doi.org/10.35912/jakman.v4i4.2305
Wibowo, RYK, Asyik, NF, & Bambang, S. (2021). THE EFFECT OF OWNERSHIP STRUCTURE, FREE CASH FLOW, AND COMPANY SIZE ON COMPANY VALUE THROUGH CAPITAL STRUCTURE. EQUITY (Journal of Economics and Finance), 5(3). https://doi.org/10.24034/j25485024.y2021.v5.i3.4799
Wiguna, KP, & Yasa, GW (2023). Capital Structure Analysis of Cigarette Companies Listed on the Indonesia Stock Exchange. E-Journal of Accounting , 33 (6), 1589. https://doi.org/10.24843/eja.2023.v33.i06.p013
YAGHFIRA, A., & WIBOWO, S. (2025). DETERMINANTS OF CAPITAL STRUCTURE IN THE PROPERTIES & REAL ESTATE SECTOR ON THE IDX 2013 – 2023 PERIOD. E-Journal of Management Trisakti School of Management (TSM) , 5 (2), 147. https://doi.org/10.34208/ejmtsm.v5i2.3004
Yuliani, E. (2021). The Effect of Capital Structure, Liquidity, and Sales Growth on Financial Performance. Journal of Management Science , 10 (2), 111. https://doi.org/10.32502/jimn.v10i2.3108
Yurisafira, OD, Sunitiyoso, Y., & Rahadi, RA (2023). Macroeconomic and financial dimensions influences on Indonesia's property and real estate companies value (2017-2022). International Journal of Research in Business and Social Science (2147-4478) , 12 (9), 229. https://doi.org/10.20525/ijrbs.v12i9.3053
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Dwi Danesty Deccasari Danesty, Marli
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
