PENGARUH LIKUIDITAS, UKURAN PERUSAHAAN DAN PROFITABILITAS TERHADAP STRUKTUR MODAL PADA PERUSAHAAN PROPERTI DAN REAL ESTATE

Abstract

This research aimed to examine the effect of liquidity, firm size and profitability on capital structure of Property and Real Estate companies which were listed on Indonesia Stock Exchange during 2016-2019. While, the data were secondary. The data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 25 companies with 100 observation data as the sample. Moreover, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 23. The research result concluded that liquidity had a negative effect on capital structure. This meant, the higher the liquidity was, and the more internal funds were used by companies instead of debts. On the other hand, firm size had a positive effect on capital structure, as big companies tended to use bigger debts to fulfill their fund’s needs. In contrast, profitability did not effect capital structure since the income development was not really enough to fulfill the needs of the company’s assets.
Keywords: liquidity, firm size, profitability, capital structure