PENGARUH MANAGERIAL OWNERSHIP, FIRM SIZE DAN GROWTH OPPORTUNITY TERHADAP STRUKTUR MODAL

Abstract

This research aimed to examine empirically and analyze the effect of managerial ownership, firm size, and growth opportunities on the capital structure of manufacturing companies. The research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 39 manufacturing companies as the sample. Furthermore, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Service Solution) 20. The research result concluded that (1) managerial ownership had a negative effect on the capital structure since the manager tended to decrease the risk by limiting companies’ debt in order not to have risks, (2) firm size had a positive effect on capital structure as the higher the firm size was, the higher the capital structure would be. On the other hand, the smaller the firm size was, the smaller the capital structure would be, (3) growth opportunities did not affect the structure as companies’ capital was tend to prioritize retained earnings over debts and stock published as the last choice. This meant, the company preferred funds from its internal.