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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)

In: Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025)

Author

Listed:
  • Mellyana Pratiwi

    (BPD University)

  • Fitri Lukiastuti

    (BPD University)

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.

Suggested Citation

  • Mellyana Pratiwi & Fitri Lukiastuti, 2025. "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)," Advances in Economics, Business and Management Research, in: Ali Mursid & Fitri Lukiastuti (ed.), Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025), pages 198-208, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-862-2_16
    DOI: 10.2991/978-94-6463-862-2_16
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