Determinants of Capital Structure

DOI

10.2991/icobame-18.2019.13How to use a DOI?

Keywords

profitability; sales growth; asset structure; liquidity; tax; business risk; capital structure

Abstract

This study analyses the capital structure of manufacturing companies listed on the Indonesia Stock Exchange. Capital structure is an important part of the company, because it relates to the composition of the company's debt. Investors need to know the problems of the company's capital structure, as one of the considerations in determining their investment policy. The study uses secondary data, with independent variables of profitability (Return on Equity), sales growth, asset structure, liquidity (Current Ratio), tax and business risk. As an independent variable is the capital structure (Debt to Equity Ratio). Data analysis used multiple regression analysis, while sampling was done by purposive sampling method. The results showed that liquidity (Current Ratio) had a negative effect on the significance of less than 1%. While profitability (Return on Equity), sales growth, asset structure, tax and business risk do not affect the capital structure.

Copyright

© 2019, 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  - Bambang Sudiyatno
AU  - Sigit Nugroho
AU  - Yeye Susilawati
AU  - Ida Nurhayati
PY  - 2019/07
DA  - 2019/07
TI  - Determinants of Capital Structure
BT  - Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
PB  - Atlantis Press
SP  - 62
EP  - 65
SN  - 2352-5428
UR  - https://doi.org/10.2991/icobame-18.2019.13
DO  - 10.2991/icobame-18.2019.13
ID  - Sudiyatno2019/07
ER  -