International Peer-Reviewed JournalOpen AccessISSN 2456-8880
irejournals@gmail.com+91-7433024337

Home / Current Issue / Paper 1705373

1705373 Vol 7 · Issue 7 Download Paper

Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure

Denny Hambali Reza Muhammad Rizqi

Subject area: Management and Commerce  ·  Area of research: Economics and Business

Abstract

The objective of this research is to assess the impact of Profitability (Return on Equity), Liquidity (Current Ratio), and Asset Structure on Capital Structure (Debt-to-Equity Ratio). The population for this study consists of 158 manufacturing companies that are listed on the Indonesia Stock Exchange from 2018 to 2022. This study included a total of 40 companies, each with 5 reporting years, resulting in a sample size of 200. The sample was acquired using purposive sampling. The research employs a quantitative strategy utilizing multiple regression statistical analysis. Utilizing Capital Structure as the response variable and Profitability, Liquidity, and Asset Structure as predictor factors. The study's findings indicate that Probability (ROE), Liquidity (CR), and Asset Structure have a favorable and significant impact on Capital Structure (DER). This suggests that the profitability of a company's investments, its ability to quickly convert assets into cash, and the kind of assets it holds significantly influence its decision to finance its operations and investments through debt or stock.

Keywords

Profitability (ROE), Liquidity (CR), Asset Structure, Capital Structure (DER).

References

[1] Andy, A., Angeline, G., Roberto, N., Wijaya, H., & Febrianty, L. (2022). Faktor-faktor yang mempengaruhi kebijakan utang dengan profitabilitas sebagai pemoderasi pada perusahaan manufaktur yang terdaftar di bursa efek indonesia. Jurnal Bina Akuntansi, 10(1), 201-228. https://

[2] Cahyani, N. and Nyale, M. (2022). pengaruh struktur aset dan likuiditas terhadap struktur modal dengan ukuran perusahaan sebagai variabel moderasi. Jiip - Jurnal Ilmiah Ilmu Pendidikan, 5(7), 2675 -2686. https://

[3] Karlinda, M. and Manunggal, S. (2023). Pengaruh leverage, firm size, profitabilitas, dan likuiditas terhadap pengambilan keputusan hedging perusahaan manufaktur di bei. Jurnal Manajemen Bisnis Dan Kewirausahaan, 7(2), 467-480. https://

[4] Martha, L., Sogiroh, N., Magdalena, M., Susanti, F., & Syafitri, Y. (2018). Profitabilitas dan kebijakan dividen terhadap nilai perusahaan. Jurnal Benefita, 3(2), 227. https://

[5] Muyasaroh, M., Agustin, F., Suhendi, D., & Dahlia, I. (2023). pengaruh pertumbuhan penjualan dan struktur aset terhadap struktur modal pada perusahaan industri sub-sektor otomotif. Primanomics Jurnal Ekonomi & Bisnis, 21(1), 112 -130. https://

[6] Nur'aini, S., Dewi, R., & Astungkara, A. (2022). Faktor-faktor penentu nilai perusahaan pada industri barang konsumsi. Inovasi, 18(2), 350- 359. https://

[7] Nurhamdi, M. (2020). Pengaruh variabel makro ekonomi terhadap profitabilitas (roa) serta dampaknya pada dividen payout ratio (dpr) pada perusahaan sector properti di bursa efek indonesia (BEI). Jurnal Sekuritas (Saham Ekonomi Keuangan Dan Investasi), 3(3), 247. https://

[8] Permatasari, I., Hasanah, N., & Khairunnisa, H. (2022). Analisis pengaruh financial distress, debt default, dan profitabilitas terhadap opini audit going concern. Jurnal Akuntansi Perpajakan Dan Auditing, 3(2), 498-513. https://

[9] Suherman, S. (2019). Pengaruh struktur aset, likuiditas, dan profitabilitas terhadap struktur modal yang dimoderasi oleh ukuran perusahaan. Mix Jurnal Ilmiah Manajemen, 9(2), 369. https://

[10] Veronika, W. and Munandar, A. (2022). Pengaruh rasio keuangan terhadap kebijakan dividen berfokus pada perusahaan pertambangan 2019-2021. Jurnal Ekonomi Pembangunan Stie Muhammadiyah Palopo, 8(2), 121. https://

[11] Yusmaniarti, Y., Marini, M., Junaidi, A., &Sumarlan, A. (2022). Pengaruh struktur kepemilikan manajerial, profitabilitas, pertumbuhan aktiva dan ukuran perusahaan terhadap struktur modal perusahaan manufaktur di indonesia. Jurnal Media Wahana Ekonomika, 19(1), 132. https://

How to cite this paper

Denny Hambali, Reza Muhammad Rizqi "Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure" Iconic Research And Engineering Journals Volume 7 Issue 7 2024 Page 126-131
Denny Hambali, Reza Muhammad Rizqi "Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure" Iconic Research And Engineering Journals, vol. 7, no. 7, Jan. 2024
Denny Hambali, Reza Muhammad Rizqi (2024). Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure. Iconic Research And Engineering Journals, 7(7).
Denny Hambali, Reza Muhammad Rizqi "Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure" Iconic Research And Engineering Journals, vol. 7, no. 7, Jan. 2024.
@article{1705373,
      author = {Denny Hambali, Reza Muhammad Rizqi},
      title = {Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {7},
      number = {7},
      pages = {126-131},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1705373.pdf},
      abstract = {The objective of this research is to assess the impact of Profitability (Return on Equity), Liquidity (Current Ratio), and Asset Structure on Capital Structure (Debt-to-Equity Ratio). The population for this study consists of 158 manufacturing companies that are listed on the Indonesia Stock Exchange from 2018 to 2022. This study included a total of 40 companies, each with 5 reporting years, resulting in a sample size of 200. The sample was acquired using purposive sampling. The research employs a quantitative strategy utilizing multiple regression statistical analysis. Utilizing Capital Structure as the response variable and Profitability, Liquidity, and Asset Structure as predictor factors. The study's findings indicate that Probability (ROE), Liquidity (CR), and Asset Structure have a favorable and significant impact on Capital Structure (DER). This suggests that the profitability of a company's investments, its ability to quickly convert assets into cash, and the kind of assets it holds significantly influence its decision to finance its operations and investments through debt or stock.},
      keywords = {Profitability (ROE), Liquidity (CR), Asset Structure, Capital Structure (DER).},
      month = {January},
  }