PENGARUH PROFITABILITAS, LIKUIDITAS DAN UKURAN PERUSAHAAN TERHADAP STRUKTUR MODAL PERUSAHAAN PROPERTY AND REAL ESTATE DI BEI

Abstract

This research aimed to examine the effect of profitability, liquidity, and firm size on capital structure. While, capital structure was financial measurement among short-term debts, long-term debts and capital itself within a company's activities. The research was quantitative with purposive sampling as its data collection technique; as the sample was taken with some criteria which had been considered. In line with that, there were 24 companies from 37 Property and Real Estate companies which were listed on Indonesia Stock Exchange (IDX) during 2015- 2019, as the sample. Moreover, the data analysis technique used multiple linear regression. The research result concluded that (1) profitability had a negative effect on capital structure. This meant, the higher the profitability level was, the lower the companies’ capital structure would be; (2) liquidity had a negative effect on capital structure. It meant, companies whose liquidity increased, would not use debts since they had more internal funds for the following investment payment; and (3) firm size had a positive effect on capital structure. In other words, the bigger the companies were, the easier the investors would invest their money would be. Besides, bigger companies would be easier to get credit for than smaller companies.
Keywords: profitability, liquidity, firm size, capital structure