Analysis Of Determinants Of Optimal Capital Structure Adjustment Speed In Energy Sector Companies In Indonesia
DOI:
https://doi.org/10.33751/jhss.v10i1.148Keywords:
Capital Structure, Speed of Adjustment, Pecking Order Theory, Energy Sector, Dynamic Trade-off TheoryAbstract
This study aims to analyze the speed of adjustment toward the optimal capital structure of energy sector companies listed on the Indonesia Stock Exchange for the 2021-2023 period. By employing a partial adjustment model on panel data from 38 companies, this research examines the internal determinants influencing capital structure dynamics. The empirical results demonstrate that firm size has a positive and significant effect on the speed of adjustment, suggesting that larger firms with better market access can reach their optimal targets more efficiently. Conversely, asset tangibility and profitability exhibit a negative and significant influence, indicating financial rigidity and a preference for internal funding as posited by the pecking order theory. Growth opportunities were found to have no significant impact on the adjustment rate. These findings provide critical implications for managers in the energy sector to achieve efficient capital structure equilibrium in a post-pandemic economy.
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