ANALISIS FAKTOR PENENTU STRUKTUR MODAL PADA PERUSAHAAN PROPERTY YANG TERDAFTAR DIBURSA EFEK INDONESIA

Abstract

This research aimed to analyse the effect of liquidity, Asset Growth, Structure and Business Risks on Capital Structure. While, the population was 32 Property companies which were listed on Indonesia Stock Exchange 2014-2018. The data collection technique used purposive sampling. In line with, there were 150 respondents assample, Moreover, the data analysis technique used multiple regression. The research result concluded: (1) Liquidity had positive and significant effect on capital on capital structure. This meant, as companies had higher liquidity, they had enough internal financing and it decreased capital structure directly. (2) Asset Growth had negative and significant effect on capital structure. It meant, the as its growth, the lower firm value would be. This increased companies’ cost as its fund focused on the growth. (3) Asset Structure had positive and significant effect on capital structure was. In other words, more fixed asset would be guaranteed for debts and vice versa. (4) Business risks had positive and significant effect on capital structure. This meant, the higher companies’ debt, the higher its bankruptcy or risks. As consequence, companies had to use fewer debts since more debts would cause more difficulties in returning.
Keywords: liquidity, asset growth, asset structure, business risks, capital structure