Factors Influencing Capital Structure at Construction Company Listed at Indonesia Stock Exchange

Capital structure is a balance between the use of debt and equity, which means how much debt and equity will beused so that it can produce an optimal capital structure. This study aims to analyze capital structure factors. Thisstudy uses capital structure as the dependent variable and asset structure, profitability, firm size, sales growth, andliquidity as independent variables. The study's population consisted of construction firms that were listed between2013 until 2016 on the Indonesian Stock Exchange. Purposive sampling is a sampling technique. Using specificcriteria, sampling generates nine companies that satisfy the requirements as samples. The present research usessecondary data, and multiple linear regression analysis is used to analyse the data at a significance level of 0.05%.The results of this research suggest that capital structure is influenced by asset structure, profitability, firm size, andliquidity. but capital structure is unaffected by sales growth. And simultaneously asset structure, profitability,company size, sales growth and liquidity affect capital structure.

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Publication Details

Journal
Bengkulu International Conference on Economics Management Business and Accounting (BICEMBA)
Published
2024-11-29
DOI
https://doi.org/10.33369/bicemba.2.2024.23
Primary Topic
Financial Reporting and Valuation Research
Type
article
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0.00
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article

Factors Influencing Capital Structure at Construction Company Listed at Indonesia Stock Exchange

Odhi Pratama
Bengkulu International Conference on Economics Management Business and Accounting (BICEMBA)
Financial Reporting and Valuation Research
article

Factors Influencing Capital Structure at Construction Company Listed at Indonesia Stock Exchange

Odhi Pratama
article en

Abstract

Capital structure is a balance between the use of debt and equity, which means how much debt and equity will beused so that it can produce an optimal capital structure. This study aims to analyze capital structure factors. Thisstudy uses capital structure as the dependent variable and asset structure, profitability, firm size, sales growth, andliquidity as independent variables. The study's population consisted of construction firms that were listed between2013 until 2016 on the Indonesian Stock Exchange. Purposive sampling is a sampling technique. Using specificcriteria, sampling generates nine companies that satisfy the requirements as samples. The present research usessecondary data, and multiple linear regression analysis is used to analyse the data at a significance level of 0.05%.The results of this research suggest that capital structure is influenced by asset structure, profitability, firm size, andliquidity. but capital structure is unaffected by sales growth. And simultaneously asset structure, profitability,company size, sales growth and liquidity affect capital structure.

Bengkulu International Conference on Economics Management Business and Accounting (BICEMBA)Vol. 2
Openalex Percentile: Top 52%
Financial Reporting and Valuation Research
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Factors Influencing Capital Structure at Construction Company Listed at Indonesia Stock Exchange — Odhi Pratama · Bengkulu International Conference on Economics Management Business and Accounting (BICEMBA) (2024) | TGRS Research Map | TGRS