Journal of Social Science and Humanities

The Impact of Inventory-to-Asset Ratio on Firm Value: Evidence from Emerging Markets

Fri, 24 Apr 2026 00:00:00 +0000

This study examines the effect of the Inventory-to-Asset Ratio (IAR) on firm value among Consumer Cyclicals companies listed in Indonesia and Malaysia, two key emerging markets in Southeast Asia. Using secondary data from the Refinitiv Eikon database, the research applies a pooled cross-sectional quantitative approach to 298 firm-year observations. Ordinary Least Squares (OLS) regression is employed, with Price Close (USD) as a proxy for firm value. The findings reveal that IAR has a negative but statistically insignificant effect on firm value (β = −0.157, t = −1.630, p = 0.104; R² = 0.009). This indicates that capital markets in these countries do not consistently incorporate inventory efficiency into equity valuation. The study contributes to the literature by providing one of the first empirical tests of the IAR–firm value relationship in the ASEAN Consumer Cyclicals sector, challenging the universality of Signalling Theory and extending insights within the Resource-Based View framework. Practically, managers should still maintain efficient inventory practices for long-term performance, while policymakers are encouraged to enhance disclosure standards. Limitations include the single-variable model, proxy choice, and cross-sectional design, suggesting future panel-based research with broader controls.

The Impact of Capital Structure on Firm Performance: A Case Study on ASEAN Countries

Fri, 24 Apr 2026 00:00:00 +0000

This study examines the impact of capital structure on firm performance using panel data from ASEAN countries between 2019 and 2023. The sample consists of publicly listed non-financial firms in emerging markets, enabling an evaluation of how leverage influences profitability under varying regulatory and financial environments. Firm performance is measured using return on assets (ROA) and return on equity (ROE), while capital structure is proxied by debt-to-equity and debt-to-assets ratios. Panel regression methods are employed to control for firm-specific heterogeneity and macroeconomic factors.The findings suggest that higher leverage does not necessarily improve profitability; instead, firms with greater debt levels may experience reduced performance. However, this relationship is non-linear and depends on the extent of leverage and its impact on earnings. The results support the trade-off theory in the ASEAN context, emphasizing the importance of maintaining an optimal capital structure. These findings provide practical implications for corporate managers and policymakers in formulating balanced financing strategies to enhance financial stability and long-term performance.

Capital Structure and Financial Performance: Evidence from Listed Financial Sector Firms in ASEAN

Xasanov Diyorbek, Imas Nurani Islam, Nono Supriatna, Nuriddin Javliyev — Fri, 01 May 2026 00:00:00 +0000

This study investigates the relationship between capital structure and financial performance among 1,483 listed firms in the TRBC Financials sector across Indonesia, Malaysia, and Singapore. Capital structure is measured using a composite leverage index, while financial performance is proxied by retained earnings scaled to total assets — a measure that captures cumulative rather than current-period profitability. Simple linear regression via SPSS yields no statistically significant association (R = 0.002; R² < 0.001; F = 0.005; p = 0.945; B = 0.002; β = 0.002). The adjusted R² is negative (−0.001), indicating that the model offers no predictive value beyond the unconditional mean of the dependent variable. Three factors account for this null result: heterogeneity of business models within the broad TRBC classification, the cumulative nature of the retained-earnings proxy, and the moderate leverage levels that prevail across ASEAN-listed financial firms. The findings align with the institutional contingency perspective and point toward multivariate panel designs as the appropriate empirical strategy for future research in this area.

The Impact of Assets on Firm Performance (Case Study on Football Club in Europe)

Fri, 01 May 2026 00:00:00 +0000

This study examines the effect of total assets on the firm value of football clubs. The commercialization of the football industry has transformed clubs into business entities, making firm value an important indicator for investors. Using a quantitative approach, this study analyzes secondary data from 10 football clubs over the period 2022–2025. Firm value is proxied by share price, while total assets are measured as the natural logarithm of total assets, and analyzed using simple linear regression. The results show that total assets do not have a significant effect on firm value, suggesting that asset size alone is not a key determinant. This study is limited by its small sample size; therefore, future research should include more samples and additional variables to provide a more comprehensive analysis.