The Effect Of Profitability, Firm Size, And Liquidity On Capital Structure In Manufacturing Companies Of The Cosmetics And Household Goods Sector (Listed on the Indonesia Stock Exchange for the Period 2020–2024)

Ghevira Nurul Awaliyah (Universitas Perjuangan Tasikmalaya)
Rita Tri Yusnita (Universitas Perjuangan Tasikmalaya)
Gian Riksa Wibawa (Universitas Perjuangan Tasikmalaya)

Innovative Business Management Journal
Vol. 3 No. 1 (2026): Oktober

This study aims to analyze the relationship of profitability, firm size, and liquidity with capital structure in Indonesia amidst the fluctuations observed between 2020 and 2024. A quantitative research method was employed. The study utilized non-probability sampling, specifically the purposive sampling technique. Secondary data were used, with a sample comprising eight manufacturing companies in the cosmetics and household goods sectors listed on the Indonesia Stock Exchange. Data analysis was conducted using panel data regression with the aid of Eviews 13, and hypotheses were tested using the F-test and t-test at a significance level of α = 0.05 (5%). The regression results indicate that profitability, firm size, and liquidity when considered simultaneously have a significant effect on capital structure. Meanwhile, partial testing reveals that while profitability significantly affects capital structure, firm size and liquidity do not have a significant impact.