Endogenous and Exogenous Factors Affecting Capital Structure: A Theoretical Review

Darmono Darmono (Universitas Muhammadiyah Berau)
Muhammad Su’un (Universitas Muslim Indonesia)
Julius Jillbert (Universitas Hasanuddin)
Natali Ikawijaya (Universitas Ciputra Makassar)
Mursyidin Mursyidin (Universitas Muhammadiyah Berau)

Atestasi : Jurnal Ilmiah Akuntansi
Vol. 7 No. 1 (2024): March

Capital structure refers to the way a company finances its operations through a mix of equity and debt. The choice of capital structure has important implications for the risk and return of a firm, as well as its ability to raise funds and invest in future growth. In this theoretical review, we will examine the endogenous and exogenous factors that affect a firm's capital structure decisions. In conclusion, a firm's capital structure decisions are influenced by a complex set of endogenous and exogenous factors. By understanding these factors, firms can make informed decisions about their capital structure, balancing the trade-offs between risk, return, and growth potential.