Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia

Research Article

Analysis Of Factors Affecting Capital Structure

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  • @INPROCEEDINGS{10.4108/eai.2-8-2023.2341715,
        author={Tiara  Pandansari and Leni  Septiyani and Ani  Kusbandiyah and Iwan  Fakhruddin},
        title={Analysis Of Factors Affecting Capital Structure},
        proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia},
        publisher={EAI},
        proceedings_a={ICEB},
        year={2024},
        month={6},
        keywords={sales growth company size profitability asset structure composition of capital},
        doi={10.4108/eai.2-8-2023.2341715}
    }
    
  • Tiara Pandansari
    Leni Septiyani
    Ani Kusbandiyah
    Iwan Fakhruddin
    Year: 2024
    Analysis Of Factors Affecting Capital Structure
    ICEB
    EAI
    DOI: 10.4108/eai.2-8-2023.2341715
Tiara Pandansari1,*, Leni Septiyani2, Ani Kusbandiyah2, Iwan Fakhruddin2
  • 1: Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Purwokerto
  • 2: Universitas Muhammadiyah Purwokerto
*Contact email: tiarapandansari@ump.ac.id

Abstract

The intent of carrying out this research is to measure the influence of sales growth, corporation size, profitability, and structure of assets on the capital structure. The study's population comprises property and real estate enterprises that are accessible through the Indonesia Stock Exchange (IDX) from 2017 until 2020. This study employs a quantitative approach. The data utilized is secondary data obtained by accessing IDX’s website. The sampling approach employed was purposive sampling. Over four years, a cumulative number of fourteen firms contributed a total of 56 observations. The employed methodology entails the utilization of multiple linear regression analysis through the SPSS software. The findings of the F-test imply that the research model employed in this investigation is viable. The outcomes of this research reveal that capital structure is affected by corporation size (2). Profitability does not correlate with capital structure. (3) The composition of a company's capital is affected positively by its assets. (4) The sales increase is affected positively by the capital structure.