Capital Structure, Firm Size, and Financial Performance of State-Owned and Private Banking Companies Listed on the Indonesia Stock Exchange

Abstract

This study was conducted to analyse how capital structure and company size affect financial performance. Capital structure was measured using the debt-to-equity ratio, while company size was measured based on size. A quantitative approach was used in this study. Sampling was determined using purposive sampling, a technique of selecting samples based on specific criteria that had been determined in advance. Through this technique, 10 companies listed on the Indonesia Stock Exchange in the 2022-2024 period were selected as research samples. The analysis technique applied was path analysis using SPSS version 26 software. The research findings show that capital structure has a positive and significant effect on financial performance, while company size has a positive but insignificant effect on financial performance