The Determinants of Capital Structure of Transportation and Logistic Companies in Indonesia during COVID-19 Pandemic

DOI

10.2991/978-2-38476-446-4_6How to use a DOI?

Keywords

Capital structure; COVID-19; Profitability; Tangibility; Firm size

Abstract

This study investigates the determinants of capital structure among transportation and logistics companies in Indonesia during the COVID-19 pandemic. Employing data from 12 firms listed on the Indonesia Stock Exchange between 2020 and 2023, the study analyzes the impact of profitability, tangibility, and firm size on capital structure decisions. EViews 13 program is utilized for data processing in this study. The results indicate that profitability significantly and negatively influences capital structure, supporting the pecking order theory, which suggests that firms prioritize internal funding over external debt to minimize financing costs. Tangibility, defined as the proportion of tangible assets, has a significant positive impact, as fixed assets enhance collateral availability and increase access to debt financing. Conversely, firm size, measured as the natural logarithm of total assets, does not significantly affect capital structure, possibly due to the inclusion of less reliable assets like receivables in the measurement. The study contributes to understanding capital structure dynamics under crisis conditions, highlighting that companies adapt their financial strategies based on asset composition and profitability. Limitations include a focus on listed companies and a narrow firm size metric. Future research could explore other sectors positively impacted by the pandemic, such as healthcare and telecommunications, or adopt alternative measures for firm size to validate these findings.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Tandri Tandri
AU  - Linda Santioso
PY  - 2025
DA  - 2025/07/22
TI  - The Determinants of Capital Structure of Transportation and Logistic Companies in Indonesia during COVID-19 Pandemic
BT  - Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
PB  - Atlantis Press
SP  - 43
EP  - 53
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-446-4_6
DO  - 10.2991/978-2-38476-446-4_6
ID  - Tandri2025
ER  -