Antecedents of Local Company Profit Growth in East Kalimantan – AJHSSR

Antecedents of Local Company Profit Growth in East Kalimantan

Antecedents of Local Company Profit Growth in East Kalimantan

ABSTRACT :This research is about Antecedents of Local Company Profit Growth in East Kalimantan, whichanalyzes the influence of financial performance and firm size on the growth of Local Company with capitalstructure as a moderating variable. The data used is panel data from Local Company in East Kalimantan for theperiod 2014-2023. This research uses quantitative methods with panel data analysis, applying the fixed effectmodel to test the hypotheses using Eviews 13. The results show that financial performance has no significanteffect on Local Company growth, while firm size has a negatif but significant effect. Capital structure is provento strengthen the relationship between financial performance and Company Growth, and significant inmoderating the relationship between Firm Size and Company Growth. The conclusion of this study is thatfinancial performance and firm size is an important factor influencing the growth of Local Company, withcapital structure as a reinforcement in this relationship.

KEYWORDS -Financial Performance, Firm Size, Local Company Growth, Capital Structure