Analysis of Factors Affecting the Company's Debt Policy with Pecking Order Theory in Wholesale and Retail Companies in Indonesia

DOI

10.2991/agc-18.2019.109How to use a DOI?

Keywords

Debt Policy, Profitability, Asset structure, Growth rate, Firm size, Sales growth, Pecking order theory

Abstract

Debt policy is one of the decisions related to company funding made by the manager. This study aims to determine the effect of profitability, asset structure, and growth rate by using control variables of firm size and sales growth on debt policy. Using multiple linear regression analysis method, the result showed that profitability and asset structure had a significant negative effect to company policy. Company growth rate, firm size, sales growth has a significant positive effect on debt policy. This is in accordance with the assumption of pecking order theory. Meanwhile, the Independent sample T-test shows that there is no real difference between the debt policy of wholesale and retail companies listed in Indonesia Stock Exchange.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nurhalis Nurhalis
AU  - Faisal Faisal
AU  - Juanda Juanda
AU  - Syarifah Rahmawati
AU  - Fathurrahman Anwar
AU  - Nadya Prihartini
PY  - 2019/01
DA  - 2019/01
TI  - Analysis of Factors Affecting the Company's Debt Policy with Pecking Order Theory in Wholesale and Retail Companies in Indonesia
BT  - Proceedings of the 1st Aceh Global Conference (AGC 2018)
PB  - Atlantis Press
SP  - 726
EP  - 730
SN  - 2352-5398
UR  - https://doi.org/10.2991/agc-18.2019.109
DO  - 10.2991/agc-18.2019.109
ID  - Nurhalis2019/01
ER  -