Open AccessCapital Structure and Financial Performance of Manufacturing Companies in Indonesia
Author(s) -
Ni Luh Ira Suitri,
Mohamad Agus Salim Monoarfa,
Srie Isnawaty Pakaya
Publication year - 2021
Publication title -
jambura science of management
Language(s) - English
Resource type - Journals
eISSN - 2656-0453
pISSN - 2655-3651
DOI - 10.37479/jsm.v3i2.11139
Subject(s) - capital structure , return on assets , business , stock exchange , debt ratio , debt to equity ratio , return on equity , debt to capital ratio , capital adequacy ratio , financial system , debt , finance , econometrics , monetary economics , economics , equity ratio , profit (economics) , population , demography , sociology , microeconomics , nonprobability sampling
This study aims to determine whether the Capital Structure affects the financial performances partially and simultaneouslly. The Capital Structure in this study is proxide by Debt to Asset Ratio (DAR) and Long Term Debt to Equity Ratio (LTDER), whereas the financial performance is proxide by Return On Asset (ROA). the type of data used in this study is secondary data obtained from the financial statements os plastic and packaging companies listed on the Indonesia Stock Exchange in 2012-2019. The analysis method uses multiple linier regression analysis. The result revealed that partially DAR had negative and significant effect on ROA, while LTDER had no significant effect on ROA. The result also shows that simultaneouslly DAR and LTDER have a significant effect on ROA.