THE INFLUENCE OF ASSET STRUCTURE, COMPANY SIZE, AND PROFITABILITY ON CAPITAL STRUCTURE IN BASIC AND CHEMICAL INDUSTRY SUB-SECTOR MANUFACTURING COMPANIES LISTED ON IDX 2014-2017 PERIOD

Abstract

In running a company, of course, requires large funds, so capital is one of the most important things for the company. Not all funding needs can be met by using your own capital. Therefore, the company fulfills funds from other parties or postpones certain obligations. Fulfillment of funds can be done by means of debt and entering the capital market. The theory used in this research is the theory of the definition of asset structure, the theory of understanding company size, the theory of the definition of profitability, the theory of understanding capital structure, the theory of the effect of asset structure on capital structure, the theory of the influence of company size on capital structure and the theory of the effect of profitability on capital structure. The approach used in this research is a quantitative approach, the type of research is descriptive and the nature of the research is descriptive explanatory. The method of data collection is done indirectly through the website www.idx.co.id. This study used a population of 64 companies in the Basic Industry and Chemical Sub-Sector Manufacturing in the Indonesia Stock Exchange for the period 2014-2017 and obtained 22 sample companies. The data analysis method is multiple linear regression analysis. The research sample used purposive sampling technique, namely the sampling technique based on certain criteria. The results of the research on the hypothesis show that partially the Asset Structure and Company Size have no and insignificant effect on the Capital Structure, and Profitability has a negative and significant effect on the Capital Structure in Manufacturing companies in the Basic Industry and Chemical Sub-Sector on the Indonesia Stock Exchange in 2014-2017