Open AccessThe Influence Of Growth Opportunity And Return On Equity (ROE) Toward Company Capital Structure
Author(s) -
Hamdan Hamdan
Publication year - 2020
Publication title -
ilomata international journal of tax and accounting
Language(s) - English
Resource type - Journals
eISSN - 2714-9846
pISSN - 2714-9838
DOI - 10.52728/ijtc.v1i3.100
Subject(s) - stock exchange , nonprobability sampling , return on equity , documentation , automotive industry , business , equity (law) , capital structure , return on capital employed , sample (material) , accounting , finance , economics , human capital , financial capital , engineering , capital formation , computer science , economic growth , debt , population , law , aerospace engineering , chemistry , sociology , chromatography , political science , programming language , demography
This study aims to determine the effect of growth opportunity and return on equity the capital structure of the automotive sub-sector companies and components listed on the Indonesia Stock Exchange (IDX) in 2014-2018.
The sample used in this study is the automotive sub-sector companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018. The sampling technique used was purposive sampling method and obtained 8 companies. The data collected is secondary data with the method of documentation through www.idx.com in the form of a company annual report. The analytical tool used for hypothesis testing is SPPS 20.
The results of this study are (1) Growth opportunity does not have a significant effect on the company's capital structure. (2) Return on equity has a significant effect on the company's capital structure.