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Journal : JBTI : Jurnal Bisnis : Teori dan Implementasi

The Determinant Factors of Capital Structure in Cyclical Sector: Empirical Study from Indonesia Heru Cahyo; Siti Muntahanah; Sodik Dwi Purnomo
JBTI : Jurnal Bisnis : Teori dan Implementasi Vol 14, No 2 (2023): August 2023
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/jbti.v14i2.19480

Abstract

This study aims to test seven internal factors determining capital structure using trade-off theory in the consumer cyclical sector in Indonesia. The research sample used a purposive sampling of 15 companies with 225 observations. Generalized Method of Moment analysis method for panel data. The research found that significant firm growth and size were proven. Tangible assets, non-debt tax shield, growth opportunity, and significant earning volume were not proven, and profitability was not significant. Investors can make the right decisions regarding ownership of company shares to sell or buy. In addition, potential investors can invest their funds by considering the company's high debt costs, which results in financial distress costs. The findings provide an overview for company managers in making decisions to achieve an optimal capital structure.
Co-Authors AA Sudharmawan, AA Adhitya, Bagus Ady Achadi Ady Achadi Agestifanka, Adna Fika Agus Prabawa ANISA FATMAWATI Anisa, Faefaya Ziadatul Arinastuti Arinastuti Aziezy, Enrico Badriah, Lilis Siti Cahyaningtyas Ria Uripi Cahyo, Heru Carla Selvianandia Alam Damar Jati Damar Jati Damar Jati Diah Retnowati Diah Setyorini Gunawan Eli Susanti Elvina Musyarof Fatmawati , Anisa Gita Putri Rahmawati Goro Binardjo Hari Winarto Hariski Nur Setiawan harsuti Harsuti, Harsuti Herbowo Herbowo, Herbowo Heri Setiawan Heris Kencana Herlina, Dian Nora Irhas Fudhail Isnaeni Rokhayati Istiqomah Istiqomah Istiqomah Istiqomah istiqomah istiqomah Istiqomah Istiqomah Ita Susilowati Kadarwati, Nunik kencana, heris Kinanti, Rinda Krisnhoe Sukma Danuta Larasati , Yustika Lestari, Herwiek Diyah Lilis Siti Badriah Luhita, Tiladela Mahardika, Dwiki Adhia Matufany, Olga Melinda Minadi Wijaya Muntahanah, Siti Nasution, Annio Indah Lestari Neni Safitri Neni Widayaningsih Neni Widyaningsih Nina Mardiana (F01108057) Octisari, Sully Kemala Panggalih, Chandra Arif Priyatama, Tunggul Puji Utami Putra Galih Rahmawan Putra, Satria Iswara Rahmawan, Putra Galih Rahmawati, Gita Putri Ramadhan, Khafridho Esa Ratna Puji Astuti, Ratna Puji Ratna Pujiasuti Recha Pangestika Sambodo, Herman Sambodo, Herman Santi Santi Suciningtyas Setiawan, Gawik Setiyaningsih, Apriyani Nur Siti Ainul Mukharomah Suharno Suharno Sukiman Sukiman Sundari, Sri Syaharani, Ajeng Bening Telefany Bunga Anugrah Ufit Panggarti Wahyuni, Yulina Tri Wulan Anggraini Yulina Tri Wahyuni Zuhaena, Fatwa Zumaeroh -