Open AccessDetermination of Capital Structure of Public Companies in Indonesia
Author(s) -
Anita Handayani,
Rahmat Agus Santoso
Publication year - 2019
Publication title -
journal of social science studies
Language(s) - English
Resource type - Journals
ISSN - 2329-9150
DOI - 10.5296/jsss.v7i1.15210
Subject(s) - capital structure , return on capital employed , return on capital , fixed capital , risk adjusted return on capital , economic capital , business , cost of capital , financial capital , physical capital , capital intensity , asset (computer security) , capital (architecture) , capital adequacy ratio , debt , debt ratio , finance , capital formation , economics , market economy , human capital , computer security , archaeology , computer science , history , incentive
Capital structure is definitely related to the company’s long-term expenditure. Capital structure compares long-term debt to own capital. Corporate funding policies can be obtained from internal and / or external companies. So the purpose of this study is to analyze the capital structure of public companies in Indonesia. In the process of determining capital structure determination using multiple linear regression statistics, the results of the study are Return On Assets, Total Asset Turnover, and Current Ratio have a negative influence on the capital structure of public companies in Indonesia. So it can be concluded that public companies in Indonesia use internal funds more than external capital because internal capital does not create a fixed burden for the company.