Open AccessTHE CAPITAL STRUCTURE DETERMINATION OF MANUFACTURING COMPANY IN INDONESIA
Author(s) -
Foza Hadyu Hasanatina,
Amalia Nur Chasanah,
Vicky Oktavia
Publication year - 2021
Publication title -
jurnal manajemen universitas bung hatta
Language(s) - English
Resource type - Journals
eISSN - 2615-5370
pISSN - 1907-6576
DOI - 10.37301/jmubh.v16i1.18337
Subject(s) - nonprobability sampling , capital structure , profitability index , manufacturing , panel data , business , balance sheet , capital (architecture) , market liquidity , population , sampling (signal processing) , econometrics , industrial organization , economics , accounting , finance , engineering , marketing , geography , debt , demography , archaeology , sociology , filter (signal processing) , electrical engineering
The aim of this research is to analyze the factor that determines the firm’s capital structure. The population are manufacturing companies in Indonesia. The sampling technique used is purposive sampling, which the characteristics are listed manufacturing company and the data that available at least in three years on the period of 2015-2019. The total samples are 189 manufacturing companies. The research type is quantitative research, using secondary data obtained from Osiris Database. The research use balance panel data estimated by fixed effect model with Stata Software. The results show that size has a significant positive effect on the company’s capital structure, while liquidity and profitability have a negative significant effect on the company’s capital structure.