The Effect of Economic Determinants on Capital Structure with Market Conditions as a Control Variable (Case Study of IDX-Listed LQ 45 Manufacturing Company in 2015-2019)
Abstract
This study was conducted to examine the effect of economic determinants on Capital Structure as measured by Profitability, Company Size, Company Growth, Asset Structure, Liquidity, Effective Tax Rate, Business Risk in LQ 45 Manufacturing Companies Listed on the IDX in the 2015 – 2019 Period. Used in this study was obtained from the Annual Report published to the public, either through the Indonesia Stock Exchange or the company's website. The sampling technique used is purposive sampling with a total sample of 135 samples. The data analysis technique used in this study is multiple linear regression analysis. Previously, the data has been tested with classical assumption testing, including descriptive analysis, chow test, Hausman test, LM test, data normality, heteroscedasticity, multicollinearity, and autocorrelation. During the observation period, it was shown that the research data were normally distributed. Based on the normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test, no variables deviated from the classical assumptions. This shows that the available data has met the requirements using the multiple linear regression equation models. This study indicates that the variables of Company Size, Company Growth, Effective Tax Rate, and Business Risk do not show a significant effect on capital structure. Profitability, Asset Structure, and Liquidity variables significantly affect capital structure.
Downloads
Copyright (c) 2022 Theresalin Theresalin, I Gusti Ketut Agung Ulupui, Harya Kuncara
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
