DOI: 10.5176/2251-1997_AF17.98
Authors: Herry Sunarto and Gilbert Rely
Abstract:
This study examines the factors that have an influence on the capital structure of the companies listed in Indonesia Stock Exchange by using multiple regression analysis. Sample period in the range of 2010-2014 for 52 manufacturing companies. The results of this study are growth opportunities, size, tangibility positive and significant impact on leverage. Profitability significant negative effect on leverage. While non-debt tax shield does not significantly affect the leverage. size, profit and the tangibility support the theory of a trade off. Growth opportunities and non-debt tax shield does not support the theory of a trade-off. Growth opportunities and profitability supported the theory of the pecking order, while the size, tangibility and non-debt tax shield does not support the pecking order theory.
Keywords: capital structure, growth opportunity, size, profitability, tangibility, non-debt tax shield.
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