THE DETERMINANTS of CAPITAL STRUCTURE (Evidence from Indonesia Manufacturing Companies Listed in Indonesia Stock Exchange for period 2010-2014)

  • Dr. Herry Sunarto
  • Gilbert Rely

Abstract

This research has examined the influence factors in the capital structure for manufacturing companies listed in Indonesia Stock Exchange by using multiple regression analysis. Sample period from 2010-2014 for 52 manufacturing companies. This results are growth opportunities, size, tangibility positive, and significant impact on leverage. Profitability significant negative effect on leverage and non-debt tax shield does not significantly affect the leverage. Size, profit, and the tangibility support the theory of a trade-off. Growth opportunities and non-debt tax shield does not support the theory of a trade-off. Growth opportunities and profitability supported the theory of the pecking order, while the size, tangibility, and non-debt tax shield does not support the pecking order theory.

Published
2018-01-27
How to Cite
SUNARTO, Dr. Herry; RELY, Gilbert. THE DETERMINANTS of CAPITAL STRUCTURE (Evidence from Indonesia Manufacturing Companies Listed in Indonesia Stock Exchange for period 2010-2014). GSTF Journal on Business Review (GBR), [S.l.], v. 5, n. 2, jan. 2018. ISSN 2251-2888. Available at: <http://dl6.globalstf.org/index.php/gbr/article/view/1270>. Date accessed: 19 june 2018.