PENGARUH PROFITABILITAS, STRUKTUR AKTIVA, RISIKO BISNIS DAN LIKUIDITAS TERHADAP STRUKTUR MODAL

Abstract

This research aimed to examine the effect of profitability, asset structure, business risk and liquidity on the capital structure. While, the data was secondary. The population was automotive companies which go public and were listed on Indonesia stock exchange. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 7 sample from 13 automotive companies 2012-2017. Furthermore, the data analysis technique used multiple linear regression with SPSS. The research result concluded profitability had negative effect on the capital structure. It meant, the higher ROE, the lower the capital structure would be. Besides, the assets structure did not affect the capital structure. On the orther hand, business risk had positive effect on the capital structure. It means, the greather the business risk, the greater the use of debt. Meanwhile, liquidity had negative effect on the capital structure. It meant, the greater liquidity determined the use internal funding, before its debt.
Keywords: profitability,asset stucture,business risk,liquidity,capital stucture