INFA International Journal of The Newest Finance and Accounting

The Effects of Profitability and Liquidity on Capital Structure, with Cost of Capital as a Mediating Variable

Mustafa Hadji — 2026-08-31

This study employs a quantitative approach with an explanatory research design. The study population consists of all property and real estate companies listed on the Indonesia Stock Exchange, while the sample was selected using purposive sampling based on predetermined criteria. The data used are secondary data obtained from the companies annual financial reports. Data analysis was conducted using multiple linear regression with IBM SPSS Statistics software, along with mediation tests to examine the role of the cost of capital as an intervening variable. The results indicate that profitability has a significant effect on the cost of capital, liquidity has a significant effect on the cost of capital, profitability has a significant negative effect on capital structure, and liquidity has a significant negative effect on capital structure. Furthermore, the cost of capital was found to mediate the effect of profitability on capital structure as well as the effect of liquidity on capital structure. These findings indicate that the cost of capital is a crucial mechanism in explaining the relationship between a company’s financial performance and capital structure decisions. Therefore, companies need to improve profitability, maintain adequate liquidity levels, and manage the cost of capital efficiently in order to establish an optimal capital structure that supports an increase in corporate value.

The Influence of Institutional Ownership and Audit Committee on Company Financial Performance with Financial Distress as an Intervening Variable in Companies with Special Notation

Akbar Tabah Mutaqin — 2026-08-31

This study aims to examine the effects of institutional ownership and the audit committee on financial performance, with financial distress as an intervening variable, among Special Notation Issuers listed on the Indonesia Stock Exchange (IDX). A quantitative approach with an explanatory research design was employed. Secondary data were obtained from companies’ annual reports and financial statements. The population consisted of Special Notation Issuers listed on the IDX, while the sample was selected using purposive sampling based on companies with B, D, E, or ED notations and complete financial statements for 2020–2025. From 215 Special Notation Issuers, 50 companies were selected as the sample. Financial distress was measured using the Altman Z-Score, while financial performance was measured using Return on Assets (ROA). Data were analyzed using panel data regression, t-test, F-test, coefficient of determination, path analysis, and the Sobel test. The results show that institutional ownership has no significant effect on financial distress, while the audit committee has a significant negative effect. Institutional ownership positively affects financial performance, whereas the audit committee has no significant effect. Financial distress negatively affects financial performance, does not mediate the relationship between institutional ownership and financial performance, but mediates the relationship between the audit committee and financial performance. These findings emphasize the importance of strengthening corporate governance, internal controls, and early warning systems to maintain financial stability.

The Effects of Profitability and Leverage on Earnings Management, with Institutional Ownership as a Moderator, in Telecommunications Companies Listed on the Indonesia Stock Exchange

Ignatius Oktafa Ika F — 2026-08-31

In a company’s financial statements, profit is one of the most important pieces of data for all stakeholders; the profit information contained in financial statements serves as key information for both external and internal parties. There is a potential phenomenon of earnings management practices among telecommunications companies in Indonesia, as evidenced by high levels of profit volatility. This study aims to analyze the effects of profitability and leverage on earnings management, moderated by institutional ownership. This study employs a quantitative research method with a causal design. It utilizes secondary data in the form of financial statements from companies in the telecommunications sector that are publicly available and listed on the Indonesia Stock Exchange (IDX). The population selected for this study consists of all 14 telecommunications companies listed on the IDX. The sample was determined using purposive sampling based on several predetermined criteria. This study employs a moderated regression analysis approach using the stepwise regression method (moderated regression analysis) and was conducted using the Eviews 10 software. The results found that, in part, profitability and leverage do not affect earnings management. Regarding institutional ownership as a moderator, it was found that institutional ownership can weaken the effect of profitability on earnings management. However, institutional ownership was found to be unable to weaken the effect of leverage on earnings management.

The Effects of Profitability and Liquidity on Capital Structure

Safira Khoirunnisa — 2026-08-31

This study aims to analyze the effects of profitability and liquidity on the capital structure of real estate companies listed on the Indonesia Stock Exchange. This study employs a quantitative approach with an explanatory research design. The data used consists of secondary data in the form of companies’ annual financial statements for the study period. The sample was selected using purposive sampling based on predetermined criteria. Profitability was measured using Return on Assets (ROA), liquidity was measured using the Current Ratio (CR), and capital structure was measured using the Debt-to-Equity Ratio (DER). Data analysis was performed using multiple linear regression with the aid of IBM SPSS. The results indicate that profitability has a negative and significant effect on capital structure, and liquidity also has a negative and significant effect on capital structure. These findings indicate that companies with strong profit-generating capabilities and good liquidity tend to prioritize internal funding sources, thereby reducing their reliance on debt.

The Effect of Return on Assets, Debt-to-Equity Ratio, Firm Size, and Sales Growth on The Dividend Payout Ratio in Manufacturing Companies Listed on The Indonesian Stock Exchange from 2014 to 2018

Berry Izzah Antrika — 2026-08-31

This study aims to analyze the effects of Return on Assets (ROA), Debt-to-Equity Ratio (DER), Firm Size, and Sales Growth on the Dividend Payout Ratio (DPR) among manufacturing companies listed on the Indonesia Stock Exchange during the 2014–2018 period. This study employs a quantitative method with an explanatory approach. The study population consisted of 144 manufacturing companies, while the sample was determined using purposive sampling based on predetermined criteria. The data used consisted of the companies’ financial statements during the observation period and were analyzed using multiple linear regression with the aid of SPSS version 21.00. The results indicate that ROA has a positive and significant effect on DPR, DER has no significant effect on DPR, Firm Size has a positive and significant effect on DPR, while Sales Growth has a negative and significant effect on DPR. Simultaneously, ROA, DER, Firm Size, and Sales Growth have a significant effect on DPR. The Adjusted R-Square value of 34.3% indicates that the independent variables in this study explain 34.3% of the variation in the dividend payout ratio (DPR), while 65.7% is explained by other factors outside the research model. This study is expected to serve as a basis for management in determining dividend policies and for investors in making investment decisions.