EFFECT OF LIQUIDITY, PROFITABILITY, AND ASSET STRUCTURE ON THE COMPANY'S CAPITAL STRUCTURE

  • Erni Kurniasari Universitas Bina Bangsa
  • Listiawati Universitas Bina Bangsa
Keywords: Capital Structure, Liquidity, Profitability, Asset Structure

Abstract

This research aims to determine the influence of liquidity, profitability, and asset structure on
capital structure partially and simultaneously. The population in this research are
pharmaceuticals companies listed on the Indonesian Stock Exchange in the period 2015-2019.
The sample selection used purposive sampling method. The sample in this research are 7
pharmaceuticals companies listed on the Indonesian Stock Exchange for 5 years in the period
2015-2019. Based on the results of this research, the researcher concludes that partially
profitability and asset structure have a significant influence on the capital structure, while
liquidity has no significant influence on the capital structure. Simultaneously, liquidity,
profitability, and asset structure have a significant influence on the capital structure. The
coefficient of determination is 0,517, showed that liquidity, profitability, and asset structure
have 51,7% to the capital structure, while 48,3% are determined by another variables.

Published
2021-06-29
How to Cite
Kurniasari, E., & Listiawati. (2021). EFFECT OF LIQUIDITY, PROFITABILITY, AND ASSET STRUCTURE ON THE COMPANY’S CAPITAL STRUCTURE. JURNAL CAFETARIA, 2(2), 1-14. https://doi.org/10.51742/akuntansi.v2i2.353
Section
JURNAL CAFETARIA JULI 2021