Effect of Profitability, Sales Growth, Liquidity, and Business Risk on Capital Structure with Company Size as a Moderating Variable in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange

Abstract

The aim of this research is to analyze effect of profitability, sales growth, liquidity, and business risk on capital structure with company size as a moderating variable in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange. This research uses a casual comparative research design. This research uses a population of Palm Oil Plantation Sector Companies category listed on the Indonesia Stock Exchange from 2017 to 2022. The number of research samples is 12 companies with a total of 6 years of observations so that the total sample is 72 observation samples. The analysis technique used is panel data regression analysis and moderation test analysis. The research results show that profitability has no significant effect on capital structure in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange. Sales growth has a significant effect on capital structure in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange. Liquidity has a significant effect on capital structure in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange. Business risk has a significant effect on capital structure in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange. Company size moderates business risk on capital structure in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange. However, company size cannot moderate profitability, sales growth, and liquidity on capital structure in Palm Oil Plantation Sector Companies on the Indonesian Stock Exchange.