PENGARUH PROFITABILITAS, LIKUIDITAS, DAN UKURAN PERUSAHAAN TERHADAP STRUKTUR MODAL

Abstract

This research aimed to examine the effect of profitability, liquidity, and firm size on the capital structure.
Profitability was measured with return on asset, liquidity was measured with current ratio, firm size was
measured with natural loarithm total asset, meanwhile, the capital structure was measured by debt to equity
ratio. Profitability, liquidity, and firm size is a factors that is taken into consideration by company management
in determining funding decisions. The research was quantitativ, i.e., by analyzing various variables in research
using numbers with statistical method. The research sample was obtained by the purposive sampling method,
i.e., a sample selection with determining criteria. Based on the purposive sampling method, obtained 65 samples
from 30 food and baverages companies listed on Indonesia Stock Exchange during the 2018-2020 period.
Moreover, the research analysis used multiple linear regressions analsis. The research data analysis result and
hypotesis test concludes that the profitability had a negative effect on the capital structure, likuidity had a
negative effect on the capital structure. Meanwhile, the firm size not did not significantly affect the capital
structure