Jurnal Ilmiah Mahasiswa FEB
Vol. 7 No. 1

ANALYSIS OF THE EFFECT OF CAPITAL STRUCTURE ON PROFITABILITY OF MANUFACTURING COMPANIES

ADAM, KEVIN CARMELO CINDY (Unknown)



Article Info

Publish Date
25 Oct 2018

Abstract

The purpose of this study was to examine the effect of capital structure on the profitability of manufacturing companies. The data used is obtained from the financial statements of companies listed on the Indonesia Stock Exchange from 2014 to 2016. The number of data observed was 65 companies for 3 years and tested using simple regression. The results of the study generate that the capital structure has a negative correlation on profitability. The results of sensitivity tests that use different measuring instruments are also consistent with the main tests that have been carried out. Keywords : Capital structure, profitability, manufacturing company

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