Abstract
The purpose of this research is to analyze the effect of profitability, liquidity, and asset structure on capital structure with firm size as a moderating variable. The population of this study was all property and real estate companies listed on the Indonesian Stock Exchange (IDX) from 2014-2016. The number of samples used was 39 companies with the audit of analysis of 117. This study used secondary data taken from the annual financial statements. The method of data analysis was descriptive analysis and Moderated regression analysis by difference absolute value test. The data analysis used was IBM SPSS Statistics 21. The result of the study showed that profitability, liquidity, and asset structure had negative and significant effects on capital structure. Firm size was able to moderates significantly the effect of liquidity on capital structure, but it is not able to moderate the effect of profitability and asset structure on the capital structure. The study concludes that capital structure is influenced by profitability, liquidity, and liquidity that moderated by firm size.
 Keywords: Profitability; Liquidity; Asset Structure; Capital Structure; Firm Size
Highlights
Companies are required to be able to win the business competition in more advanced and developing business conditions
This study aims to analyze the effect of profitability, liquidity, and asset structure on capital structure with firm size as a moderating variable
H5: Firm size moderates the effect of liquidity on capital structure
Summary
Companies are required to be able to win the business competition in more advanced and developing business conditions. This situation is a challenge that must be faced by companies in carrying out their operational activities. Companies must be able to manage their funding needs in order to compete with other companies. Funding in companies is obtained through two main funds, namely own and foreign funds. Funding from companies can be in the form of retained earnings another case with foreign funding that can be obtained from debt. According to Riyantina & Ardiansari (2017), the corporate capital structure can be used as a measure in making good funding decisions
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