The Effect of Corporate Characteristics on Capital Structure in Indonesia


  • Nicko Albart Sekolah Bisnis IPB
  • Bonar Marulitua Sinaga Sekolah Bisnis IPB
  • Perdana Wahyu Santosa YARSI University, Jakarta, Indonesia
  • Trias Andati School of Business IPB University, Bogor, Indonesia



Capital structure, company characteristics, ownership, profitability, tangibility


This study aims to determine the effect of corporate characteristics on the company's capital structure, which plays a fundamental role in the proportion of debt and equity financing risks. The research method used is purposive sampling. This research's population is non-financial issuers listed on the Indonesia Stock Exchange with quarterly data for the period of 2010-2017. The analysis is performed using panel data with six independent variables and two control variables. The results of this study indicate that profitability and institutional ownership have a negative effect on capital structure. In contrast, market ratios, firm size, and managerial ownership have a positive effect on capital structure. Debt decision making must consider financial and ownership characteristics, especially if there is institutional or government ownership in the company because company characteristics have a significant effect on the company's capital structure.


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How to Cite

Albart, N., Sinaga, B. M., Santosa, P. W., & Andati, T. (2020). The Effect of Corporate Characteristics on Capital Structure in Indonesia. Journal of Economics, Business, and Accountancy Ventura, 23(1), 46–56.