Capital Structure as Mediation on Investment Opportunity Set and Firm Performance: Evidence from Emerging Market Indonesia Rayhandika Ahmad SYAHPUTRA, Dian AGUSTIA, Yani PERMATASARI
Universitas Airlangga
Abstract
This study aims to analyze the role of Capital Structure as a mediating variable in the relationship between Investment Opportunity Set and Firm Performance. The subjects of this study were 430 non-financial Firms listed on the Indonesia Stock Exchange (IDX) in the 2015-2020 period with a total of 2,281 data. The sample data was processed using Stata 14 Software. The results of this study indicate that the Capital Structure cannot mediate the relationship between the Investment Opportunity Set and the Firm^s Performance. The Investment Opportunity Set also has a negative effect on the Firm^s performance. Investment Opportunity Set does not affect Capital Structure.
Keywords: Investment Opportunity Set, Capital Structure, Firm Performance, Emerging Market
