The influence of profitability, size, and growth on the capital structure in consumer goods companies

Yovilanda Anggraeni Puspitasari, Diah Ekaningtias

Abstract


Capital structure is a very important element needed by companies to conduct the companies’ operational activities. Companies must determine whether to use internal funds first or external funds to finance investment in getting an optimal capital structure. The purpose of this study is to examine the influence of the variables of profitability, size and growth on the capital structure in consumer goods companies. Multiple regression analysis is used to analyze the data in this study. Data analysis is conducted on consumer goods companies listed on the Indonesia Stock Exchange period 2012-2016. Based on the analysis, it is found that profitability, size, and growth have an effect on capital structure in consumer goods companies listed on the Indonesia Stock Exchange 2012-2016.

Keywords


capital structure, profitability, size, growth



DOI: 10.14414/tiar.v7i2.1603

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