The influence of capital structure and operational performance on financial performance with governance and financial risk as mediation in Insurance Companies in Indonesia

Ahmad Sumarlan; Kamaluddin Kamaluddin; Fachruzzaman Fachruzzaman; Robinson Robinson

doi:10.55942/jebl.v4i1.305

Authors

Ahmad Sumarlan Universitas Muhammadiyah Bengkulu
Kamaluddin Kamaluddin Universitas Bengkulu
Fachruzzaman Fachruzzaman Universitas Bengkulu
Robinson Robinson Universitas Bengkulu

DOI:

https://doi.org/10.55942/jebl.v4i1.305

Keywords:

Capital structure, operational performance, governance, financial risk, financial performance

Abstract

This study examines the influence of capital structure and operational performance on financial performance, with governance and financial risk as mediators. The sam- ple for this research comprises insurance companies listed on the Indonesia Stock Exchange in 2013-2021 with a total of 72 firm-year observations. The data used are secondary data obtained from annual and financial reports accessed via idx.co.id. The independent variables are capital structure, measured using the Debt Equity Ratio (DER), and operational performance, measured using liquidity. The mediating variable is the governance variable, measured by the independent board of directors (DKI), and financial risk is measured using Risk Based Capital (RBC). The depen- dent variable in this study uses financial performance as measured by Return On Assets (ROA). The results prove the following: (1) Capital structure has a positive and significant effect on financial performance. (2). Operational performance has a negative and significant effect on financial performance. (3). Capital structure had a positive and significant effect on DKI. (4) Operational performance has a significant negative effect on financial risk. (5) DKI does not mediate the influence of capital structure on financial performance. (6) Financial risk fully mediates the influence of operational performance on financial performance. (7). DKI has a negative and significant effect on financial performance. (8). Financial risk has a negative and significant effect on financial performance.

References

Abdullah, H., & Tursoy, T. (2021). Capital structure and firm performance: evidence of Germany under IFRS adoption. Review of Managerial Science, 379-398

Afza, T., & Ahmed, N. (2017). Capital Structure , Business Strategy and firm’s performance : Evidence from. European Online Journal of Natural and Social Sciences, 6(2), 302– 328.

Ahmad, A., M. T . Anjum & M. Azeem. (2014). Investigating The Impact Of Corporate Governance On Earning Management In The Presence Of Firm Size: Evidence From Paksitan. Vidyabharati International Interdiscipliary Research Journal. 3 (2): 84-90.

Albastian, F. A., & Isnaen, F. (2021). Analisa Pengaruh Struktur Modal, Premi Netto dan Profitabilitas terhadap Solvabilitas Perusahaan Asuransi di Indonesia. Al-Amal: Jurnal Akuntansi dan Keuangan Islam, (2)2, hal:144-166

Ardiana, E., & Chabachib, M. C. (2015). Analisis Pengaruh Struktur Modal,

Ukuran Perusahaan dan Likuiditas Terhadap Nilai Perusahaan Dengan

Profitabilitas Sebagai Variabel Intervening (Studi pada Perusahaan Consumer Goods yang terdaftar di BEI pada Tahun 2012-2016). Diponegoro Journal of Management, 7(2), 1–14. https://doi.org/10.1115/IMECE2012-8571

Asna, Hardiyanti Adi. (2017). Pengaruh Dewan Komisaris,Independen, Kepemilikan Manajerial, dan Kepemilikan Institusional Terhadap Kinerja Perusahaan Pada Perusahaan Manufaktur. STIE Perbanas Surabaya

Awrasya, J.F., & Kusumaningtias, R. (2021). Pengaruh Rasio Earlu Warning System dan Good Corporate Governance Terhadap Tingkat Solvabilitas pada Asuransi Jiwa Syariah. JAE: Jurnal Akuntansi dan Ekonomi, 6(2), 13-26. DOI: 10.29407/jae. v6i2.15830

Bei, Z., & Wijewardana, W. P. (2012). Financial leverage, firm growth and financial strength in the listed companies in Sri Lanka. Procedia - Social and Behavioral Sciences, 40, 709– 715. https://doi.org/10.1016/j.sbspro.2012.03.253

Brealey, Richard A., Myers dan Marcus, 2017, Dasar-Dasar Manajemen Keuangan Perusahaan, Edisi Kelima, Jilid 2, Alih Bahasa Bob Sabran, Erlangga, Jakarta.

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage

Chandra, T., Junaedi, A. T., Wijaya, E., Suharti, S., Mimelientesa, I., & Ng, M. (2019). The effect of capital structure on profitability and stock returns: Empirical analysis of firms listed in Kompas 100. Journal of Chinese Economic and Foreign Trade Studies, 12(2), 74–89. https://doi.org/10.1108/JCEFTS-11-2018-0042

Charumathi, B. (2012). Determinants of Profitability of Indian Life Insurers - An Empirical Study. Proceedings of the World Congress on Engineering, 1I, WCE, July 4-6.

Dewi, I. (2014). Pengaruh Struktur Modal Terhadap Nilai Perusahaan (Studi Pada

Sektor Pertambangan Yang Terdaftar Di Bei Periode 2009-2012). Jurnal

Administrasi Bisnis S1 Universitas Brawijaya, 17(1), 85090

Ehikioya, Benjamin I. 2009. "Corporate governance structure and firm performance in developing economies: evidence from Nigeria". Corporate Governance, Vol. 9 Iss: 3 pp. 231 – 243.

Fosu, S. (2013). Capital structure, product market competition and firm performance: Evidence from South Africa. The Quarterly Review of Economics and Finance, 53(2), 140–151. https://doi.org/10.1016/j.qref.2013.02.004

Gitman, L.J., & Zutter, C.J. (2014). Principles of Managerial Finance. South Africa, Pearson.

Hair, et al, 2014, Multivariate Data Analysis, New International Edition., New Jersey : Pearson.

Hapsoro, D., & Hartomo, A. B. (2016). Keberadaan Corporate Governance Sebagai Variabel Moderasi Pengaruh Financial Distress Terhadap Earnings Management. Jurnal Ekonomi Dan Bisnis, 19(1), 91.

Hassan, M. K., & Halbouni, S. S. (2013). Corporate governance, economic turbulence and financial performance of UAE listed firms. Studies in Economics and Finance, 30(2), 118–138. https://doi.org/10.1108/10867371311325435

Hestiningtyas, W., & Widyawati, N. (2019). Pengaruh Kebijakan Dividen, Kepemilikan Institusional Dan Kepemilikan Manajerial Terhadap Kebijakan Hutang Perusahaan Manufaktur. Jurnal Ilmu dan Riset Manajemen (JIRM), 8(6).

Jensen, Michael C. and W.H. Meckling. 1976. Theory Of The Firm: Manajerial Behavior, Agency Cost And Ownership Structure. Journal Of Financial Economics, 3, 305-360.

Kristanto, J. C. (2018). Kinerja Perusahaan Terhadap Kompensasi Eksekutif pada perusahaan yang Terdaftar di Indeks LQ45 Periode 2012-2016. Jurnal Ilmiah Mahasiswa Universitas Surabaya Vol 7 No.1.

Lukviarman, N., 2016. Corporate Governance. 1st ed. Solo: PT Era Adicitra Intermedia

.

Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research.

Mardnly, Z., Mouselli, S., & Abdulraouf, R. (2018). Corporate governance and firm performance: an empirical evidence from Syria. International Journal Of Islamic And Middle Eastern Finance And Management, 11(4), 591-607.

Megginson, W.L. (1997). Corporate finance. Singapore: Addison Wesley.

Mishra, R. K., & Kapil, S. (2018). Board Characteristics and Firm Value for Indian Companies. Journal of Indian Business Research, 10(1), 2–32. https://doi.org/10.1108/JIBR-07-2016-0074

Modigliani, F. And M. Miller. 1958. The Cost Of Capital, Corporation Finance And Theory Of Investment. American Economic Review, 48, 261-297.

Modigliani, F. and M. Miller. 1963. Corporate Income Taxes And The Cost Of Capital: A Correction. American Economic Review, 53, 433–443.

Mujtahidah, I., & Laily, N. (2016). Pengaruh Rasio Likuiditas, Rasio Aktivitas dan Rasio Solvabilitas Terhadap Profitabilitas. Jurnal Ilmu Dan Riset Manajemen, 5 (11), 1–18

Myers, S. C. 1977. The Determinants Of Corporate Borrowing. Journal Of Financial Economics, 5, 147–175.

Nasution, M., dan Doddy Setiawan, 2007, “Pengaruh Corporate Governance Terhadap Manajemen Laba Di Industri Perbankan Indonesia”, Simposium Nasional Akuntansi X.

Noviani, A. V., Atahau, A. D. R., & Robiyanto, R. (2019). Struktur Modal, Profitabilitas, dan Nilai Perusahaan: Efek Moderasi Good Corporate Governance. Jurnal Ekonomi dan Bisnis, 22(2), 391–415. https://doi.org/10.24914/jeb.v22i2.2601

Novita, I. dan L. Ardini. (2020). Pengaruh Kinerja Keuangan, Good Corporate Governance, dan Struktur Aset Terhadap Kebijakan Hutang. Jurnal Ilmu dan Riset Akuntansi, 9(2).

Nurrosis, D. S., & Rahayu, S. (2020). Pengaruh Risk Based Capital, Premium Growth Dan Beban Klaim Terhadap Profitabilitas (studi Kasus Pada Perusahaan Asuransi Jiwa Yang Terdaftar Di Otoritas Jasa Keuangan Tahun 2013-2018). EProceedings of Management, 7(1).

O’Brien, J. P., David, P., Yoshikawa, T., & Delios, A. (2014). How capital structure influences diversification performance: A transaction cost perspective. Strategic Management Journal, 35(7), 1013–1031.

https://doi.org/10.1002/smj.2144

Prabowo, Harry. dan Jaya, Tresno E. 2015. Pengaruh Sistem Informasi Akuntansi Manajemen, Strategi, dan Inovasi Terhadap Kinerja Operasional Perusahaan Manufaktur Dalam Memasuki Era Perdagangan Bebas.

Sastri, I. A. I. P. (2017). Pengaruh Pendapatan Premi, Hasil

Underwriting, Hasil Investasi Dan Risk Based Capital Terhadap Laba Perusahaan Asuransi (Studi Empiris pada Perusahan Asuransi yang

Terdaftar di Bursa Efek Indonesia periode 2011-2015). E-Journal S1 Ak

Universitas Pendidikan Ganesha, 7(1), 1–11. https://doi.org/10.23887/JIMAT.V7I1.9409

Satria, Salustra. 1994. Pengukuran Kinerja Keuangan Perusahaan Asuransi

Kerugian Di Indonesia dengan Analisis Rasio Keuangan Early Warning

System. Jakarta : FE UI

Sekaran, Uma dan Bougie, Roger. 2016. Research Methods For Business: A Skill Building Approach, 7th Edition. New Jersey: Wiley

Sekaran, Uma (2003), Research Methods For Business: A Skill Building Aproach, New York- USA: John Wiley and Sons, Inc

Shiu, Y. (2015). Determinants of United Kingdom General Insurance Company. British Actuarial Journal, 10(5), 1079–1110.

https://doi.org/10.1017/S1357321700002968

Singh, P., & Kumar, B. (2012). Trade-off Theory vs Pecking Order Theory Revisited: Evidence from India. Journal of Emerging Market Finance. https://doi.org/10.1177/0972652712454514

Sumartono., & Harianto, K.A. (2018). Kinerja Keuangan Perusahaan Asuransi di Indonesia dan Faktor-faktor yang Mempengaruhinya. Future Jurnal Manajemen dan Akuntansi, 6(1), 1-14

Sobandi, K.A. dan Kosasih, S. (2014), Manajemen Operasi, Jakarta: Mitra Wacana Media.

Tsaur, S.-H., & Wang, C.-H. (2009). Tip-collection strategies, service guarantees, and consumer evaluations of group package tours. Journal of Travel Research, 47(4), 523– 534.

Utami, E. P., & Khoiruddin, M. (2016). Pengaruh rasio keuangan early warning system terhadap tingkat solvabilitas Perusahaan Asuransi Jiwa Syariah periode 2010-2013. Management Analysis Journal, 5(1).

Van Zijl, W., Wöstmann, C., & Maroun, W. (2017). Strategy disclosures by listed financial services companies: Signalling theory, legitimacy theory and South African integrated reporting practices. South African Journal of Business Management, 48 (3), 73 –85. https://doi.org/10.4102/sajbm.v48i3.37

Whiting, R. H., & Gilkison, S. J. (2000). Financial leverage and firm response to poor performance. Pacific Accounting Review, 12(2), 1–35. https://doi.org/10.1108/eb037951

Wijayanti, S., & Mutmainah, S. (2012). Pengaruh Penerapan Corporate Governance Perbankan Yang Terdaftar Di Bursa Efek Indonesia. Diponegoro Journal of Accounting, 1(2), 1–15.

Yanti, N., Sarwani, & Rosari, N. (2021). Karakteristik Perusahaan dan Pengungkapan Corporate Social Responsibility Dimoderasi Good Corporate Governance terhadap Nilai Perusahaan. Organum: Jurnal Saintifik Manajemen dan Akuntansi, 04(01), 55–71. Retrieved from http://ejournal.winayamukti.ac.id/index.php/Organum/article/view/129/40

Yasser, Rafique., et al. 2017. Impact of Board Structure on Firm Performance: Evidence From an Emerging Economy. Journal of Asia Business Studies, Vol. 11 No. 2, 2017, pp. 210- 228, ISSN 1558-7894