The Relationship Between Goodwill and Capital Structure With Financial Market Development as A Moderator

Transportation and logistics companies in Indonesia face significant challenges in maintaining capital stability, especially after the COVID-19 pandemic. The volatility in earnings and the increasing importance of intangible assets like goodwill have raised questions about their impact on capital structure. This study aims to examine the influence of goodwill assets, earning volatility, and financial flexibility on capital structure, with financial market development as a moderating variable. A quantitative research method was employed using panel data regression and moderated regression analysis. The study analyzed 120 observations from 20 companies listed on the Indonesia Stock Exchange between 2018 and 2023. Results indicate that goodwill assets and earning volatility do not have a significant effect on capital structure, while financial flexibility shows a strong and consistent influence. Furthermore, financial market development does not significantly moderate the relationship between goodwill and capital structure. These findings suggest that internal financial strategies, particularly enhancing financial flexibility, are more impactful than intangible assets in shaping capital structure decisions in this sector. Future research should explore additional moderating variables, such as governance quality or investor sentiment, and conduct cross-sectoral comparisons to generalize findings.