The Effect of Capital Structure on Telecommunication Firm Performance

An International Evidence

Authors

  • Rizal Ahmad Fauzi School of Business, IPB University
  • Noer Azam Achsani School of Business, IPB University, Bogor, Indonesia
  • Trias Andati School of Business, IPB University, Bogor, Indonesia
  • Lukytawati Anggraeni Department of Economics, IPB University, Bogor, Indonesia

DOI:

https://doi.org/10.20525/ijfbs.v11i2.1798

Keywords:

Capital Structure, Firm Performance, Telecommunication, Generalized Moment Method

Abstract

This study analyzes the effect of capital structure on the performance of telecommunications firms. The firm performance is measured by return on assets while capital structure is proxied with the ratio of debt total assets. Data of telecommunication firm in 62 countries period of year 2010-2020 proceed with a dynamic data panel regression model using the generalized method of moment approach. The empirical results indicated that capital structure of telecommunication firm has significantly impact to the firm performance in developed and developing countries as well as in integrated and wireless telecommunication firms.  The other factors that effect on firm performance are firm size and growth. The novelty of this study lies in the scope of analyses that cover world-wide telecommunication industry based on demographic group (developed and developing countries) and main businesses (integrated and wireless telecommunication).

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Published

2022-06-23

How to Cite

Rizal Ahmad Fauzi, Noer Azam Achsani, Trias Andati, & Lukytawati Anggraeni. (2022). The Effect of Capital Structure on Telecommunication Firm Performance: An International Evidence. International Journal of Finance & Banking Studies (2147-4486), 11(2), 98–108. https://doi.org/10.20525/ijfbs.v11i2.1798