The Effect Structure of Assets, Liquidity, Firm Size and Profitability of Capital Structure (Empirical Study on Manufacturing Companies Listed on Indonesia Stock Exchange)

Abstract

This study aimed to examine the effect structure of asset, liquidity, firm size, and
profitability of capital structure at manufacturing companies listed on Indonesia
Stock Exchange. This study uses secondary data, which is data obtained from
Indonesian Capital Market Directory 2015 (ICMD 2015), with purposive sampling
method obtained as many as 156 samples of the company during 2014 and 2015.
Data analysis technique used is multiple linear regression analysis. The results of
descriptive analysis indicate that the structure of assets, firm size and profitability
does not affect the capital structure. Meanwhile, if seen from the significance of
liquidity variables affect the capital structure significantly. The results of this study
indicate that (1) there are variables of asset structure and firm size that have no
effect on capital structure (2) liquidity variables and profitability affecting capital
structure, (3) structure of asset, liquidity, firm size, and profitability effect on DER
while 41,3% influenced by other factor not examined in this research.
Keywords: Structure of Asset, Liquidity, Firm Size, Profitability, and Capital Structure.