PENGARUH PROFITABILITAS, UKURAN PERUSAHAAN, DAN PERTUMBUHAN PENJUALAN TERHADAP STRUKTUR MODAL

Abstract

This research to find out the effect of profitability, firm size and sales growth on the capital structure. While, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 11 samples of Food and Beverages companies with 4 years observation (2014-2018). Based on the data analysis, capital structure (DAR) was the independent variable. Meanwhile, the independent variables were namely profitability (ROA), firm size (SIZE), and sales growth (SG). Move over, the research result concluded firm size had negative and significant effect on the capital structure. This meant, company used its profit to pay the cost of company's capital. In contrast, firm size had negative but insignificant effect on the capital structure. On the other hand, sales growth had positive but insignificant effect on the capital structure. In other words, firm size and sales growth did not affect the capital structure. Futhermore, it concluded Food and Beverages companies had more concern on its profitability. This happened as the profit higher, the more tendency of companies in using internal fund to pay capital cost or their operational would be. Besides, firm size and its sales growth would also be considered since the bigger the firm size and the higher the sales growth would increase the asset and money change. As consequence, there was trust from investors on the companies in order to invest some money or share its capital to the companies.
Keywords: Profitability, Firm Size, Sales Growth, Capital Structure