Business Innovation Management and Entrepreneurship Journal
Vol. 3 No. 02 (2024): OCTOBER

The Effect of Asset Structure, Asset Growth, and Sales Growth on The Capital Structure

Padillah, Nur (Unknown)
Sebayang, Minda Muliana Br. (Unknown)
Ramadhani, Sari Nuzullina (Unknown)



Article Info

Publish Date
31 Oct 2024

Abstract

The optimal capital structure is the balance of debt and equity by maximizing the company’s value through prudent investment efforts and improving the financial and operational performance of each business organization or company. This study aims to analyze the effect of asset structure, asset growth, and sales growth on the capital structure of consumer goods companies listed on the Indonesia Stock Exchange in 2018-2022. The population in this study includes 46 consumer goods companies listed on the Indonesian Stock Exchange in 2018-2022. The sample used after purposive sampling was 23 companies. Analysis methods used in this study using multiple linear regression with IBM SPSS Statistics version 26 software. The data analysis results show that asset structure and sales growth positively and significantly affect capital structure. In contrast, asset growth has a negative and insignificant effect on capital structure. The company must leverage these factors to improve its capital structure.

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Journal Info

Abbrev

bimantara

Publisher

Subject

Decision Sciences, Operations Research & Management Energy

Description

Bimantara (Business Innovation Management and Entrepreneurship Journal) is published by the Magister of Management Programme, Universitas Muhammadiyah Malang. Bimantara journal is a peer-reviewed and open-access journal published twice a year (April and October). This journal only accepts articles ...