The Determinant Analysis of Capital Structure Policy at Listed Companies on Jakarta Islamic Index (original) (raw)

Determinants of Capital Structure in Companies Listed in The Jakarta Islamic Index

International Journal of Economics, Management and Accounting, 2018

Capital structure is permanent financing consisting of long-term debt, preferred stock, and shareholder capital. Therefore, it is necessary to examine whether internal factors including company size, liquidity, ROA (Return on Assets) and sales growth affect the capital structure of companies listed in the Jakarta Islamic Index. This study aims at examining the effect of company size, liquidity, ROA and sales growth on the capital structure. The analysis used in this study was a multiple linear regression analysis. The results showed that company size, liquidity, ROA and sales growth have a significant influence on the capital structure of companies listed in the Jakarta Islamic Index, while the rest was explained by other factors not included in this study.

The Determinants of the Capital Structure : Empirical Evidence from Indonesian Stock Exchange Companies

The purpose of this study was to analyze the factors affecting capital structure in Indonesia. The variables used were DER as the dependent variable and as independent variables are profitability, growth opportunity, fixed asset tangibility, size, dividend payout ratio and shortterm debt to total assets. The sample used in this study is a company registered in LQ-45. And selected by using purposive sampling. Thus obtained 38 companies as a sample. The analytical method used is linear regression. The results obtained from this study is the variable profitability, tangibility fixed assets and short term debt to total assets that have a significant influence 5%. While the growth opportunity and size variables have a significant influence 10%. While the variable dividend payout ratio does not have a significant influence.

The Determinants of Capital Structure In Manufacturing Companies Listed on The Indonesia Stock Exchange

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management, 2021

This study aims to analyze the Effect of Profitability (ROA), Asset Structure, Sales Growth, Company Size and Dividend Policy on Capital Structure (Case Study of Manufacturing Companies Listed on the Indonesia Stock Exchange 2015-2019 Period). The population used in this study is a company that is included in the category of manufacturing companies listed on the IDX in 2015-2019, totaling 148 companies. This study amounted to 30 companies in the five year study period, so the research data amounted to 150 data. The data collection method is done through documentation study; the analysis method uses multiple regression analysis. Testing in this study indicates that Return on Assets (ROA), Assets Structure (SA), Company Size, and Dividend Payout Ratio positively affect capital structure. In contrast, Sales Growth does not affect Capital Structure.

Determinants of Capital Structure: Empirical Evidence from the Indonesia Stock Exchange

2018

Capital structure strategy relates to the composition of debt and equity, which will deliver the highest profitability to the companies. To analyze the variables affecting the capital structure, this study utilized yearly financial statements from 2001 to 2015 with the exclusion of 2008, for 136 non-financial public companies listed on the Indonesia Stock Exchange. This study adopted an econometric approach of t-test, correlation coefficient, difference test and descriptive statistics analysis. The variables adopted are net debt-to-equity ratio as the dependent variable, size, profitability, asset structure, liquidity, sales growth and capital expenditure as the independent variable. This study found that for overall market, size, profitability, asset structure and sales growth have a significant relationship with capital structure. On the other hand, this study found no significant relationship between liquidity and capital structure. The findings of this study suggested that the m...

The Capital Structure’s Determinant in Firm Located in Indonesia

2018

This research aims to identify the capital structure’s determinant in companies located in Indonesia. This research uses 97 panel data of companies located in Indonesia listed in Indonesian Stock Exchanges during period of 2010-2015. Seven hypotheses are composed to represent the main theory of Capital Structure. The method uses in this research is the verification method using Multiple Regression Analysis, Classic Assumptions Test, as well as hypotheses testing. The result shows that Firm Growth, Sales Growth, Profitability, Tangibility, Cashflows and Institutional Ownership partially affected to Capital Structure. While the Firm Size have no impact on Capital Structure.

Determinants of Company Capital Structure

Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020), 2020

This study aims to prove empirically that sales growth, profitability, asset structure, business risk, financial risk, tax, Firm growth and firm size are determinants of the capital structure decisions of companies incorporated in the LQ45 index on the Indonesia Stock Exchange. The sample was taken using purposive random sampling, and the collected panel data were analyzed using panel data regression. The results showed that the independent variables that had a significant effect on the capital structure proxied by the debt to asset ratio (DAR) were: sales growth, profitability, asset structure, and firm size

Determinants of Capital Structure

Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018), 2019

This study analyses the capital structure of manufacturing companies listed on the Indonesia Stock Exchange. Capital structure is an important part of the company, because it relates to the composition of the company's debt. Investors need to know the problems of the company's capital structure, as one of the considerations in determining their investment policy. The study uses secondary data, with independent variables of profitability (Return on Equity), sales growth, asset structure, liquidity (Current Ratio), tax and business risk. As an independent variable is the capital structure (Debt to Equity Ratio). Data analysis used multiple regression analysis, while sampling was done by purposive sampling method. The results showed that liquidity (Current Ratio) had a negative effect on the significance of less than 1%. While profitability (Return on Equity), sales growth, asset structure, tax and business risk do not affect the capital structure. Keywords—profitability; sales...

The Determinants of Capital Structure in Manufacturing Companies Listed on the Indonesia Stock Exchange with the Firms’ Size As a Moderating Variable

KnE Social Sciences

The determinants of capital structure have been debated among financial management researchers. This debate is caused by different research result about the determination of capital structure. The capital structure is a financing mix of short-term debt, longterm debt, and equity. This study investigates the determinants of capital structure in Manufacturing Companies listed on the Indonesia Stock Exchange. Tangibility, profitability, growth opportunities, business risk are used as independent variables, capital structure proxied by debt to equity ratio (DER) as dependent variables and firm size as a moderating variable. The population in this study is Manufacturing Companies listed on the Indonesia Stock Exchange (IDX) during the period 2010-2016; sampling technique used was purposive sampling and data analysis was done using panel data regression. The result shows that there is no significant impact of tangibility, profitability, and business risk to capital structure. The capital structure is significantly positively affected by the growth opportunities at Manufacturing Companies. Meanwhile, firm size as a moderating variable strengthens the positive and significant relationship between asset structure and capital structure. On the basis of these empirical findings, the determinants of capital structure are influenced by the growth of the firms. The firm's size strengthens the positive and significant relationship between asset structure and capital structure.

Analysis of Capital Structure in Various Industry Companies on the Indonesia Stock Exchange

https://www.ijrrjournal.com/IJRR\_Vol.8\_Issue.2\_Feb2021/IJRR-Abstract080.html, 2021

The finances of a company are determined by the capital structure. There are variables that effect the capital structure of a company, for example, such as asset structure, liquidity (quick ratio), and profitability (GPM). This study aims to determine the effect that occurs between asset structure with capital structure, liquidity with capital structure, and profitability with capital structure. The data collection technique used a purposive sample, and there were 9 samples of companies from 39 populations of various industry companies listed on the Indonesia Stock Exchange (BEI) in 2014-2018. The analysis model uses multiple linear regression. Based on the results of the F test, it shows that the value of Fcount>Ftable is 9.508>2.83, so that simultaneously the asset structure, liquidity, profitability have an effect on the capital structure of companies in various industry companies on the Indonesia Stock Exchange. Whereas in the t test, asset structure, liquidity, profitability do not partially effect the capital structure.

Determining Factors of Capital Structure and its Effect on the Value of Public Companies in Indonesia

Asian Journal of Economics, Business and Accounting

The purpose of this study is to analyze the determinants of capital structure and how its affect firm value. The sample selected from public companies listed on the IDX which four (4) industries were selected by using stratified and purposive random sampling that have been selected 74 companies with 222 observations from 2017 to 2019. Estimation technique of panel data in this study by using the FEM approach. The results of hypothesis testing reveal that in the first model, three (3) variables that have a significant positive effect on the company's capital structure, namely AUR, LSIZE and ROA. Furthermore, in the second model, the company's capital structure has a negative effect on firm value. This study also reveals that companies tend to use debt as the first alternative when internal sources of funds are insufficient. Investors are advised to be careful in investing their funds in companies that have a very high debt utilization ratio, because in addition to burdenin...