The Importance of Asset Structure in Company Value

Oct 13, 2025 by talynt.org 123 views

The Effect of Asset Structure, Capital Structure, and Market Risk on Company Value with Company Growth as an Intervening Variable in Non-Bank State-Owned Companies on the Indonesia Stock Exchange

Introduction

The State-Owned Enterprises (BUMN) in Indonesia play a vital role in the country's economy, and their performance has a significant impact on the national economic stability and growth. The BUMN companies listed on the Indonesia Stock Exchange (IDX) during the 2012 to 2016 period were 16 SOE companies that played an important role in the industrial and strategic business sectors in Indonesia. This study aims to explore the simultaneous and partial effects of asset structure, capital structure, and market risk on company value, using company growth as an intervening variable.

The Importance of Asset Structure in Company Value

The asset structure refers to the composition and proportion of various types of assets owned by the company. A company that has a strong asset structure tends to have better ability to deal with risk and achieve financial stability. In the context of BUMN, assets that are well managed can generate optimal income, which in turn will increase the company's value. A company with assets that are managed efficiently will be better prepared to face market challenges and be able to make intelligent investment decisions.

The Role of Asset Structure in Risk Management

A company with a strong asset structure can better manage risk and achieve financial stability. This is because a well-managed asset structure can generate optimal income, which can be used to mitigate risks and achieve financial stability. In the context of BUMN, a strong asset structure can also help the company to face market challenges and make intelligent investment decisions.

The Impact of Capital Structure on Company Value

The capital structure is related to how the company finances operational and investment activities through a combination of debt and equity. Proper capital structure management is very important to maintain a balance between risk and profitability. If the proportion of debt is too high, the company will face the risk of bankruptcy, especially in uncertain market conditions. Conversely, the use of greater equity can provide better financial flexibility, but may not maximize the potential profit.

The Importance of Capital Structure in Risk Management

A company with a well-managed capital structure can better manage risk and achieve financial stability. This is because a well-managed capital structure can provide better financial flexibility, which can be used to mitigate risks and achieve financial stability. In the context of BUMN, a well-managed capital structure can also help the company to face market challenges and make intelligent investment decisions.

The Effect of Market Risk on Company Growth

Market risk includes uncertainty associated with fluctuations in investment value in financial markets. In the context of SOEs, market risk can be influenced by macroeconomic conditions, government policies, and competition in the industry. SOEs must be able to face this risk with adaptive strategies, so that the expected growth is not hampered. Sustainable company growth will create a positive impact on the company's value, where good total asset growth can reflect future profitability.

The Role of Market Risk in Company Growth

Market risk can have a significant impact on company growth. A company that is able to face market risk with adaptive strategies can achieve sustainable growth, which can create a positive impact on the company's value. In the context of BUMN, a company that is able to face market risk can also increase its market share and produce more profit.

Company Growth as an Intervening Variable

Company growth is a key factor that connects asset structure, capital structure, and market risk with company value. When companies are able to grow well, this not only increases the image in the eyes of investors but also increases market share. Healthy growth allows companies to produce more profit, which in turn increases the company's value. In other words, sustainable company growth becomes an important bridge that connects all other variables in this study.

The Importance of Company Growth in Connecting Asset Structure, Capital Structure, and Market Risk

Company growth is a key factor that connects asset structure, capital structure, and market risk with company value. A company that is able to grow well can increase its image in the eyes of investors, increase market share, and produce more profit. In the context of BUMN, company growth can also help the company to face market challenges and make intelligent investment decisions.

Conclusion

From the explanation above, it can be concluded that asset structure, capital structure, and market risk have a significant influence on the value of state-owned companies in Indonesia, especially through company growth. Therefore, company management needs to pay attention to these three elements to ensure survival and sustainable growth. The success of BUMN in managing these elements will not only increase the value of the company but also contribute to national economic stability and growth.

The Future of BUMN in Indonesia

The future of BUMN in Indonesia is closely related to the ability of the company to manage asset structure, capital structure, and market risk. A company that is able to manage these elements well can achieve sustainable growth, increase its value, and contribute to national economic stability and growth. In the context of BUMN, the company needs to pay attention to these three elements to ensure survival and sustainable growth.

Recommendation

Based on the findings of this study, the following recommendations are made:

BUMN companies need to pay attention to asset structure, capital structure, and market risk to ensure survival and sustainable growth.
BUMN companies need to develop adaptive strategies to face market risk and achieve sustainable growth.
BUMN companies need to increase their image in the eyes of investors by achieving sustainable growth and increasing market share.
BUMN companies need to produce more profit by achieving sustainable growth and increasing market share.

By following these recommendations, BUMN companies can achieve sustainable growth, increase their value, and contribute to national economic stability and growth.
Frequently Asked Questions (FAQs) about the Effect of Asset Structure, Capital Structure, and Market Risk on Company Value with Company Growth as an Intervening Variable in Non-Bank State-Owned Companies on the Indonesia Stock Exchange

Q: What is the main objective of this study?

A: The main objective of this study is to explore the simultaneous and partial effects of asset structure, capital structure, and market risk on company value, using company growth as an intervening variable in non-bank state-owned companies listed on the Indonesia Stock Exchange.

Q: What is the significance of asset structure in company value?

A: Asset structure refers to the composition and proportion of various types of assets owned by the company. A company with a strong asset structure tends to have better ability to deal with risk and achieve financial stability, which can increase the company's value.

Q: How does capital structure affect company value?

A: Capital structure is related to how the company finances operational and investment activities through a combination of debt and equity. Proper capital structure management is very important to maintain a balance between risk and profitability, which can increase the company's value.

Q: What is market risk, and how does it affect company growth?

A: Market risk includes uncertainty associated with fluctuations in investment value in financial markets. In the context of SOEs, market risk can be influenced by macroeconomic conditions, government policies, and competition in the industry. SOEs must be able to face this risk with adaptive strategies to achieve sustainable growth.

Q: Why is company growth an important intervening variable?

A: Company growth is a key factor that connects asset structure, capital structure, and market risk with company value. When companies are able to grow well, this not only increases the image in the eyes of investors but also increases market share, which can increase the company's value.

Q: What are the implications of this study for BUMN companies?

A: The findings of this study suggest that BUMN companies need to pay attention to asset structure, capital structure, and market risk to ensure survival and sustainable growth. BUMN companies need to develop adaptive strategies to face market risk and achieve sustainable growth.

Q: What are the recommendations for BUMN companies based on this study?

A: Based on the findings of this study, the following recommendations are made:

BUMN companies need to pay attention to asset structure, capital structure, and market risk to ensure survival and sustainable growth.
BUMN companies need to develop adaptive strategies to face market risk and achieve sustainable growth.
BUMN companies need to increase their image in the eyes of investors by achieving sustainable growth and increasing market share.
BUMN companies need to produce more profit by achieving sustainable growth and increasing market share.

Q: What are the limitations of this study?

A: The limitations of this study include:

The study only focuses on non-bank state-owned companies listed on the Indonesia Stock Exchange.
The study only examines the effects of asset structure, capital structure, and market risk on company value, using company growth as an intervening variable.
The study does not examine the effects of other variables that may influence company value.

Q: What are the future research directions based on this study?

A: The future research directions based on this study include:

Examining the effects of other variables that may influence company value, such as corporate governance and industry characteristics.
Investigating the effects of asset structure, capital structure, and market risk on company value in other industries and countries.
Developing a more comprehensive model that incorporates multiple variables and their interactions to explain company value.

By addressing these FAQs, we hope to provide a better understanding of the effect of asset structure, capital structure, and market risk on company value with company growth as an intervening variable in non-bank state-owned companies on the Indonesia Stock Exchange.