Abstract
The aim of this study is to analyze the effect of company size variables, asset growth, asset structure and business risk against capital structure adjustment speed with dynamic approach. The number of samples in this study was 63 companies by using purposive sampling method. Multiple regression method with fixed effect model was used as data analysis in this study. The results of this study indicate that company size and asset structure have positive significant effect on capital structure adjustment speed, whereas asset growth has significant negativeeffect on capital structure adjustment speed and business risk does not have significanteffect on capital structure adjustment speed.
Highlights
The capital structure is widely researched as a variable in modern financial theory
The research design aims to find out how the effect of firm size, asset growth, asset structure and business risk on the speed of capital structure adjustment for non-financial companies listed on the BEI period 2006-2016
This study aims to analyze the effect of firm size, asset growth, asset structure and business risk on the speed of capital structure adjustment. for it is made hypothesis as follows:: Definition of Research Variables
Summary
The capital structure is widely researched as a variable in modern financial theory. Many of these capital structure theories support the explanation of the various levels of debt used as capital in a company. Capital structure can be an important issue for a company (Putri, 2012; Wahyuni, 2013). In carrying out its operation, the company put capital as an important element (Sari et al, 2012; Utomo, 2013). The capital structure used in a company as a source of funding varies (Yulianto, 2013). The company must adjust the optimal debt level (Yulianto et al, 2015)
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