Abstract
This study aims to determine the effect of capital structure on the level of assets (profitability). The population of this study was conducted in the multi-finance sector, namely PT Buana Finance which was listed on the Indonesia Stock Exchange (IDX) with a sample period of 2018 - 2022. This type of research was quantitative research. The analysis technique used in the study was the SEM-PLS application which was carried out by model analysis test. construction and path analysis. The results of this study indicate that the value of the R-Square model gives a value of 0.991, both for the DAR variable which is influenced by the DER in the model of 99.1%. The value of the R-Square of ROA is 0.754 either or 75.4% of the variation in profitability (ROA) is influenced by DAR and DER. The remaining 24.6% is influenced by factors other than the second variable. The results of testing the DER hypothesis have no effect on ROA. DAR has a negative and significant effect on ROA. DER has a significant effect on DAR.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.