Are Investments Non Current Assets with Debt Can Improve Performance ?

Abstract

The structure of assets and capital structure is closely related to the company's performance. Good corporate governance can also affect the company's performance. Measurement variable asset structure using the ratio of non-currents assets to total assets (NCATA), capital structure variables measured by the debt ratio (DR), good corporate governance (GCG) is measured by a proxy for the amount of institutional ownership, the number of commissioners, and the amount of the board of directors. The company's performance is measured by the ratio of return on total assets (ROA). The analytical tool used is the analysis of multiple linear regression. The first phase of this article examines the effect of the NCATA and GCG on DR, GCG practices that show no effect, while NCATA positive effect on DR. The second phase of testing GCG and NCATA examine the effect mediated by DR on ROA shows NCATA and DR negative effect, while GCG positive effect on ROA. This article is a limitation on the number of indicators used to measure each of the variables.

Keywords: Asset Structure, Capital Structure, Corporate Governance, Corporate Performance