Journal of Social Science
Vol. 3 No. 1 (2022): Journal of Social Science

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)

Theresalin Theresalin (Faculty of Economics, Jakarta State University, Indonesia)
I Gusti Ketut Agung Ulupui (Faculty of Economics, Jakarta State University, Indonesia)
Harya Kuncara (Faculty of Economics, Jakarta State University, Indonesia)



Article Info

Publish Date
28 Jan 2022

Abstract

This study aims 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. The information used in this study came from the company's annual report, which was made available to the public via the Indonesia Stock Exchange or the company's website. Purposive sampling was employed, with a total sample size of 135 samples. Multiple linear regression analysis was utilized to analyze the data in this study. Classic assumption testing, such as descriptive analysis, chow test, Hausman test, LM test, data normality, heteroscedasticity, multicollinearity, and autocorrelation, had previously been performed on the data. The research data were found to be regularly distributed during the observation period. No variables diverged from the traditional assumptions based on the normality, multicollinearity, heteroscedasticity, and autocorrelation tests. This demonstrates that employing several linear regression equation models, the given data met the requirements. The variables of company size, company growth, effective tax rate, and business risk do not have a substantial effect on capital structure, according to this study. Capital structure is influenced by profitability, asset structure, and liquidity.

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Journal Info

Abbrev

jsss

Publisher

Subject

Religion Humanities Education Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences Other

Description

The Journal of Social Science provides a means for sustained discussion of relevant issues that fall within the focus and scopes of the journal which can be examined empirically. The journal publishes research articles covering all aspects of social sciences, ranging from Management, Economics, ...