PENGARUH STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP PROFITABILITAS FOOD AND BEVERAGE

Abstract

Company needs capital to run the business activities, both from internal and external parties. Meanwhile, profitability is a counter balance between the uses of own capital and share ownership, while foreign capital is in the form of debt. Moreover, profitability is obtained by comparing net income with total assets profitability optimally which can balance the use of debt with profit. This research aimed to analyze the effect of Capital Structure dan Firm Size. The population was 11 food and beverage companies which were listed in Indonesia Stock Exchange 2014-2017 by using purposive sampling, in which the sample was based on criteria given. The research result concluded the capital structure which was measured by debt to assets ratio had positive effect on the profitability. On the other hand, the capital structure which was measured by debt to equity ratio did not have positive effect on the profitability. Similar to the capital structure, the firm size had positive effect on the profitability
Keywords: capital structure, firm size, profitability.