Andieni Laila Lestari
Program Studi Manajemen Fakultas Ekonomi Dan Bisnis Universitas Pamulang Tangerang Selatan

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The Influence of Capital Structure and Company Size on Profitability at PT Adhi Karya Tbk for the 2015-2024 Period Andieni Laila Lestari; Dina Novita
Escalate : Economics and Business Journal Vol. 4 No. 4 (2026): Escalate : Economics and Business Journal
Publisher : Takaza Innovatix Labs Ltd.

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61536/escalate.v4i4.811

Abstract

Profitability is an important indicator of a company's financial performance and can be influenced by capital structure and firm size. This study aims to examine the effect of capital structure and firm size on the profitability of PT Adhi Karya Tbk during 2015–2024. This research employed a quantitative associative approach. The population and sample comprised of PT Adhi Karya Tbk financial statement data for the 2015–2024 period, resulting in 10 annual observations. Data were collected through documentation, while capital structure was measured by Debt to Equity Ratio (DER), firm size by SIZE, and profitability by Return on Assets (ROA). Data analysis was conducted using descriptive statistics, classical assumption tests, multiple linear regression, correlation analysis, coefficient of determination, t-test, and F-test with SPSS version 27. The results showed that capital structure had no significant effect on profitability, while firm size had a negative and significant effect on profitability. Simultaneously, capital structure and firm size have a significant effect on profitability. In conclusion, firm size plays a significant role in explaining profitability, whereas capital structure does not have a significant partial effect