PENGARUH PROFITABILITAS, GROWTH OPPORTUNITY DAN FIRM SIZE TERHADAP STRUKTUR MODAL

Abstract

This research aimed to examine the effect to financisl performance, growth opportunity, and firm size on the capital structure of some manufacturing companies which were listed on Indonesia Stock Exchange.The population was 47 manufacturing companies which were listed on Indonesia Stock Exchange (IDX) 2014-2018. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 235 companies as sample. Furthermore, the data analysis technique used multiple regression SPSS 23.The research result concluded profitability had significant effect on the capital structure. It meant, companies had a tendency to use internal funding or own capital. Likewise, growth opportunity had significant effect on the capital structure. In other words, companies which had rapid growth would tend to use debt since they relatively paid the operational cost. On the other hand, firm size did not affect the capital structure. This meant, firm size did not determine type of funfing which was to be used.
Keywords: Financial Performance, Growth Opportunity, Firm Size, Capital Structure.