The Effect of Ownership Structure and Capital Structure on Return on Assets (ROA) with Firm Size as a Moderating Variable (A Study on Food and Beverage Sub-sector Companies Listed on the IDX in 2020–2024)

Mellyana Pratiwi () and Fitri Lukiastuti
Additional contact information
Mellyana Pratiwi: BPD University
Fitri Lukiastuti: BPD University

A chapter in Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025), 2025, pp 198-208 from Springer

Abstract: Abstract This study aims to analyze the effect of ownership structure and capital structure on Return on Assets (ROA), with firm size as a moderating variable. The research was conducted on food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. The independent variables consist of managerial ownership, institutional ownership, and capital structure (measured by the Debt to Equity Ratio/DER), while Return on Assets (ROA) is used as the dependent variable. The analytical method employed is Moderated Regression Analysis (MRA), with data processing carried out using SPSS version 27. The results show that both managerial and institutional ownership have a significant positive effect on ROA, while capital structure (DER) has a significant negative effect. Furthermore, firm size significantly moderates the influence of each independent variable on ROA, either strengthening or weakening the relationship depending on the variable interaction. These findings support agency theory, trade-off theory, and the resource-based view (RBV) in explaining the relationships among ownership, capital structure, firm size, and financial performance. The practical implication suggests that companies should strategically manage ownership composition and funding structure while considering firm size and internal resources to improve efficiency and profitability.

Keywords: Managerial Ownership; Institutional Ownership; Capital Structure; Firm Size; Return on Assets (ROA) (search for similar items in EconPapers)
Date: 2025
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:978-94-6463-862-2_16

Ordering information: This item can be ordered from
http://www.springer.com/9789464638622

DOI: 10.2991/978-94-6463-862-2_16

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 ().