Comparative Analysis of Capital Structure and Profitability During the COVID-19 Pandemic on Telecommunication Companies in the Indonesian Stock Exchange

Novie Wulan Sari () and Mokhamad Anwar
Additional contact information
Novie Wulan Sari: Padjadjaran University, Master of Management, Faculty of Economics and Business
Mokhamad Anwar: Padjadjaran University, Master of Management, Faculty of Economics and Business

A chapter in Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022), 2024, pp 243-252 from Springer

Abstract: Abstract This study examined the comparative analysis of capital structure and profitability during the COVID-19 pandemic. In knowing the extent of the benefits obtained by a company, it can be seen from the financial performance, especially in the capital structure as measured by the Debt-to-Equity Ratio and Debt-to-Asset Ratio. The capital structure will affect the profitability measured by the Return on Equity because the maximum use of debt will reduce interest payments since the company is required to pay higher interest. In the profitability calculation, the level of profit obtained from the company during the COVID-19 pandemic can be found. The purpose of this study was to find out the comparison and the influence between capital structure and profitability. This study used a telecommunication company listed on the Indonesian Stock Exchange over the period of 2017–2021. The type of data used was secondary data. The results of this study showed that capital structure was measured by the Debt-to-Equity Ratio the and Debt-to-Asset Ratio revealed a negative effect on profitability measured by Return on Equity.

Keywords: Capital Structure; Debt to Asset Ratio; Debt to Equity Ratio; Profitability; Return on Equity Ratio (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-234-7_23

Ordering information: This item can be ordered from
http://www.springer.com/9789464632347

DOI: 10.2991/978-94-6463-234-7_23

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().