Impact Of Capital Structure, Intangible Assets, And Effective Tax Rate On Corporate Performance

Authors

  • Nishrina Nurul Amirah Trisakti University
  • Vinny Rezalia Trisakti University
  • Henny Setyo Lestari Trisakti University
  • Farah Margaretha Trisakti University

DOI:

https://doi.org/10.37638/bima.6.1.683-690

Keywords:

Financial Management, Firm Performance, Intangible Assets, Debt Levels, Market Valuation

Abstract

Purpose: This research investigates the effects of financial management strategies, specifically debt levels, intangible assets, and tangibility, on firm performance, measured by Return on Assets (ROA) and Tobin’s Q. It aims to delineate how these strategies influence operational efficiency and market valuation across various sectors. Methodology: Utilizing a quantitative approach, the study analyzes data from firms in infrastructure, media, and pharmaceutical sectors listed on the Indonesia Stock Exchange over 2019-2023. A fixed effects model is applied to understand the impact of financial strategies on firm performance. Results: The study finds that higher debt levels negatively affect profitability but positively influence market valuation. Intangible assets enhance operational profitability but have a mixed impact on market valuation, indicating a market challenge in valuing these assets accurately. Conversely, tangibility increases profitability but is perceived negatively in market valuation. Findings: The differential impact of financial strategies suggests that firms need to balance their asset and debt management to optimize both profitability and market perception. Novelty and Originality: This research contributes new insights into the nuanced roles of asset management in financial strategy, emphasizing sector-specific financial management practices. It highlights the complex interplay between financial decisions and firm performance, providing a nuanced understanding that aids strategic financial planning. Conclusion: Effective financial management involves balancing debt, tangibility, and intangible assets to enhance firm performance across various metrics. Future research could explore these relationships under different economic conditions and extend findings across other sectors. Type of Paper: Research Article

References

Assidi, S., Aliani, K., & Omri, M. A. (2016). Tax optimization and the firm's value: Evidence from the Tunisian context. Borsa Istanbul Review, 16(3), 177-1841

Dancakova, D., Sopko, J., Glova, J., & Andrejovska, A. (2022). The impact of intangible assets on the market value of companies: Cross-sector evidence. Mathematics, 10(20), 3819. https://doi.org/10.3390/math10203819

Henry, E., & Sansing, R. (2019). Corporate tax avoidance: Data truncation and loss firms. Review of Accounting Studies, 24(1), 1-281

Intara, P., & Suwansin, N. (2024). Intangible assets, firm value, and performance: Does intangible-intensive matter? Cogent Economics & Finance. https://doi.org/10.1080/23322039.2024.2375341

Jonnius, J., & Marsudi, A. S. (2021). Profitabilitas dan nilai perusahaan. Jurnal Manajemen Internasional Dinasti Sains, 3(1), 23–47. https://doi.org/10.31933/dijms.v3i1.977

Margaretha, F., & Ginting, K. R. (2016). Faktor-faktor yang mempengaruhi struktur modal pada perusahaan BUMN di Indonesia. Journal of Economics, 7(1), 55-67. ISSN 2087-8133. https://ejurnal.esaunggul.ac.id/index.php/Eko/article/view/1521

Montresor, S., & Vezzani, A. (2016). Investasi tak berwujud dan kecenderungan inovasi: Bukti dari innobarometer 2013. Industry and Innovation, 23(4), 331–352. https://doi.org/10.1080/13662716.2016.1151770

Nguyen, T. H. (2024). The impact of capital structure on the performance of state-invested enterprises in Vietnam. Cogent Economics & Finance, 12(1), 2399955. https://doi.org/10.1080/23322039.2024.2399955

Tesema, T. N. (2024). Pengaruh struktur modal terhadap kinerja: Bukti empiris dari perusahaan manufaktur di Ethiopia. Cogent Economics & Finance, 12(1), 2300926. https://doi.org/10.1080/23322039.2023.2300926

Thi Viet, N., Thanh, L. T., & Phuong, N. T. (2021). Capital structure and firm performance: Evidence from Vietnamese listed companies. Journal of Asian Finance, Economics and Business, 8(6), 35-431

Downloads

Additional Files

Published

2025-06-30

Issue

Vol. 6 No. 1 (2025)

Section

Reasearch Paper

License

An author who publishes in the BIMA JOURNAL: Business, Management, and Accounting Journal agrees to the following terms:

Author retains the copyright and grants the journal the right of first publication of the work simultaneously licensed under the Creative Commons Attribution-ShareAlike 4.0 License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal

Submission of a manuscript implies that the submitted work has not been published before (except as part of a thesis or report, or abstract); that it is not under consideration for publication elsewhere; that its publication has been approved by all co-authors. If and when the manuscript is accepted for publication, the author(s) still hold the copyright and retain publishing rights without restrictions. For the new invention, authors are suggested to manage its patent before published. The license type is CC-BY-SA 4.0.

Hasil gambar untuk gambar cc by sa

BIMA JOURNAL: Business, Management and Accounting is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

You are free to:

Share — copy and redistribute the material in any medium or format

Adapt — remix, transform, and build upon the material

for any purpose, even commercially.

The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

  • ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.

  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Notices:

  • You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
  • No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.