The Effect of Profitability and Tangibility on Capital Structures

DOI

10.2991/aebmr.k.210831.032How to use a DOI?

Keywords

Profitability, Tangibility, Capital Structure

Abstract

The aims of this study to determine the overview of the profitability measured by Return On Equity (ROE), tangibility, and the capital structure measured by Debt to Equity Ratio (DER), and to know the profitability and tangibility of the capital structure. The research methods used are descriptive and verificative. The research population is a sub-sector company of Pharmaceuticals registered in the Indonesian Stock Exchange period 2012-2017. Samples were taken with purposive sampling techniques. The analytical techniques used are classical assumption testing and panel regression analysis, and hypothesis testing using the F test and T-test. The results revealed that the development of profitability decreased, the development of tangibility increased, and the development of capital structures that experienced increases and decreases that tend to decline. Based on the F test, the profitability and tangibility are pensive to the capital structure. Based on the T-test, profitability affects the capital structure, and tangibility does not affect the capital structure.

Copyright

© 2021, 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  - S. Sulastri
AU  - Putri
AU  - Heraeni Tanuatmodjo
PY  - 2021
DA  - 2021/09/02
TI  - The Effect of Profitability and Tangibility on Capital Structures
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 159
EP  - 162
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.032
DO  - 10.2991/aebmr.k.210831.032
ID  - Sulastri2021
ER  -