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The Effect of Asset Structure, Profitability and Liquidity on the Capital Structure of the Manufacturing Industry Sector Nanan Sunandar; Erna Sugiarti
Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 6, No 1 (2023): Budapest International Research and Critics Institute February
Publisher : Budapest International Research and Critics University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33258/birci.v6i1.7416

Abstract

The motivation behind this research is to find out the variables that affect capital structure, and this examination is a quantitative report using optional information handled through various methods of multiple linear regression investigation using SPSS26. Asset structure (X1), profitability (X2), and liquidity (X3) are independent research variables, while capital structure (Y) is the research dependent variable. Comparison of Asset Structure, Return On Assets (ROA), Current Ratio (CR), and Debt To Equity Ratio (DER) as measuring tools. The participants in this study were food and beverage companies listed on the Indonesia Stock Exchange in 2019 – 2021, while the sample this study consisted of 15 food and beverage companies listed on the Indonesia Stock Exchange in 2019 - 2021. Purposive sampling was used to take samples, this study found that partially asset structure and profitability have a negative impact on capital structure, while liquidity has a positive impact on capital structure. Then if simultaneously asset structure, profitability, and liquidity have a positive effect on capital structure.