EXPLANATION STUDY OF AGRO-INDUSTRIAL FIRM FINANCIAL PERFORMANCE BASED ON CAPITAL STRUCTURE AND FIRM STRATEGY IN THE COVID-19 PANDEMIC

The purpose of this study was to examine the effect of corporate strategy on financial performance with capital
structure as an intervening variable. The advantage of this research lies in taking the object of the company in
the agroindustry sector in the Covid-19 pandemic situation which has not been the concern of researchers. The
population is all agroindustry companies, listed in Indonesian Stock Exchange. Data collection technique using
purposive sampling method and a total of 52 sample data were obtained with a time span of 2020-2021 which
were processed using the multiple regression method. The results show that there is an effect of corporate
strategy on capital structure, as well as capital structure that affects financial performance. However, the
opposite result is shown by the non-influence of corporate strategy variables on financial performance. Thus,
the mediating role of capital structure in the relationship between corporate strategy and financial performance
has been clearly proven. The results of this study are able to provide future research recommendations in the
form of using variations of company strategies that can have different implications, especially for companies in
the agroindustry sector during the covid-19 pandemic. In addition, this study also recommends companies to
manage their capital structure optimally to generate value to financial performance. This research will also
contribute on the fast growth of literature related to corporate strategy, capital structure, and financial
performance as well as the development of agency theory, signal theory and pecking order theory.