PENGARUH PROFITABILITAS, STRUKTUR AKTIVA, DAN GROWTH OPPORTUNITY TERHADAP STRUKTUR MODAL

Abstract

This research aimed to examine the effect of profitability, asset structure, and growth opportunity on capital structure of manufacturing companies which were listed on Indonesia Stock Exchange during 2017-2020. The research was quantitative. While the population was all manufacturing companies which were listed on Indonesia Stock Exchange during 2017-2020. Moreover, the data collection technique used purposive sampling, in which the sample. Furthermore, the data analysis technique used multiple linear regression with Statistical Product and Service Solution (SPSS). The research result concluded that profitability had a positive effect on capital structure. It meant, the higher the companies’ profit was, the higher the capital structure would be. On the other hand, asset structure did not affect capital structure. This meant, as the asset structure increased, companies’ capital structure decreased. In contrast, growth opportunity had a positive effect on capital structure. It meant, the higher the growth opportunity was, the more influence would be given into decision making of companies’ capital structure.
Keywords: Profitability, Asset Structure, Growth Opportunity, Capital Structure