Analysis of the Influence of Profitability, Asset Structure, and Growth Rate on Capital Structure in Registered Mining Companies on the Indonesian Stock Exchange

Abstract

This study aims to determine and analyze the effect of profitability, asset structure, and sales growth simultaneously and partially on the capital structure of mining companies listed on the Indonesia Stock Exchange. The type of research used in this research is associative research with a causal quantitative approach. The population used in this study was taken from the annual reports of coal mining and metal mineral sub-sector companies that have been listed on the Indonesia Stock Exchange in the 2018-2022 period as many as 32 companies. Based on the purposive sampling method, the samples used in this study were 27 coal mining and metal mineral sub-sector companies on the Indonesia Stock Exchange in the 2018-2022 period. The validity test, reliability test, normality test, multicollinearity test, and heteroscedasticity test were carried out on research instruments. The results of the study prove that profitability has a positive and significant effect on capital structure. Asset structure has a positive and significant effect on the capital structure. Sales growth has no significant effect on capital structure. Simultaneously, profitability, asset structure, and sales growth have a significant effect on the capital structure of mining companies listed on the Indonesia Stock Exchange. The coefficient of determination is 0.089 or 8.9%.