PENGARUH PROFITABILITAS, LIKUIDITAS DAN RISIKO BISNIS TERHADAP STRUKTUR MODAL PERUSAHAAN

Abstract

This research aimed to find out the effect of profitability, liquidity and business risk on companies capital structure of automotive and components. While, the variables were referred to Return On Asset (ROA), Current Ratio (CR), Degree of Operating Leverage (DOL) and Debt to Equity Ratio (DER). The population was automotive and components which were listed on Indonesia Stock Exchange during 2015-2019. Moreover, the data were secondary. Furthermore, the data collection technique used purposive sampling. In line with, there were 9 companies as the sample. Additionally, the data analysis technique used multiple linear regression with SPSS 23. The research result concluded profitability had negative effect on capital structure of automotive and components which were listed on Indonesia Stock Exchange during 2015-2019. On the other hand, liquidity did not affect capital structure of automotive and components which were listed on Indonesia Stock Exchange during 2015- 2019. In contrast, business risk had negative effect on capital structure of automotive and components which were listed on Indonesia Stock Exchange during 2015-2019.
Keywords: profitability, liquidity, business risk, capital structure