PENGARUH PROFITABILITAS, LIKUIDITAS, DAN KESEMPATAN TUMBUH TERHADAP STRUKTUR MODAL

Abstract

This research aimed to examine the effect of profitability, liquidity, and growth opportunities on the capital structure. While, the sample was Property, Real Estate and Building Construction companies which were listed on Indonesia Stock Exchange 2014-2017. Moreover, the sampling collection technique use purposive sampling, in which there were 223 samples. For the research result, it concluded as follows: (1) Profitability did not affect on the capital structure. It meant, the higher the profitability, the more profits would be used by the company, rather than its debts for the operational cost. (2) Liquidity had negative effect on the capital structure. In other words, the higher the liquidity, the more internal funds would be used by the company, rather than its debts for fulfill their short-term liabilities. (3) Growth opportunities had positive effect on the capital structure. It meant, the firm growth had increased as the fixed assets increased in certain periods. Therefore, the creditors trust in lending would like to be increased also, as it became company funds comparison between using its capital and debts.
Keywords: profitability, likuidity, growth opportunities, capital structure