Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia

Research Article

The Determinant of Capital Structure in Mining and Metal Company

Download467 downloads
  • @INPROCEEDINGS{10.4108/eai.13-2-2019.2286039,
        author={Anita  Roosmawarni and Nurul Laili Mauliddah},
        title={The Determinant of Capital Structure in Mining and Metal Company },
        proceedings={Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia},
        publisher={EAI},
        proceedings_a={ICBLP},
        year={2019},
        month={10},
        keywords={roa ios tangibility assets tax sales growth and capital structure},
        doi={10.4108/eai.13-2-2019.2286039}
    }
    
  • Anita Roosmawarni
    Nurul Laili Mauliddah
    Year: 2019
    The Determinant of Capital Structure in Mining and Metal Company
    ICBLP
    EAI
    DOI: 10.4108/eai.13-2-2019.2286039
Anita Roosmawarni1,*, Nurul Laili Mauliddah1
  • 1: Management Study, Faculty of Economics and Business, Muhammadiyah University of Surabaya
*Contact email: anita.roosmawarni@fe.um-surabaya.ac.id

Abstract

A mining sector has substantial capital and funding needs. It triggered the go public company to continue to improve its performance to attract investors, especially PMA. The increase in production in this research was measured through the company’s capital structure pattern. The variables that were wanted to know the effect on the company's capital structure in the mining sector in ROA, IOS, tangibility assets, taxes, and sales growth. Based on the results of multiple linear regression analysis using panel data with a fixed effect model was as the best model in this research. The test results through the t test showed that ROA, taxes and sales growth had a non-significant effect on the capital structure, while the IOS variables and charges had a significant influence on the development of capital structures. Whereas through a simultaneous test, the independent variables together had a significant effect on the capital structure.