CAPITAL STRUCTURE IMPACT OF PROFITABILITY, SALES GROWTH AND ASSET STRUCTURE

Abstract

The purpose of this study was to determine the effect of Profitability, Sales Growth and Asset Structure on Capital Structure. This type of research is explanatory research with a quantitative approach method. The population of this study were all various industrial sector companies listed on the Indonesia Stock Exchange for the period 2014-2018, the research sample was determined by purposive sampling method and there were 23 companies that met the criteria for the research sample. The analysis technique used is descriptive statistical analysis, panel data regression, classical assumption test, and hypothesis testing. The results showed that there was a simultaneous influence on the variables of profitability, sales growth and asset structure on capital structure. Meanwhile, the results of the study partially show that profitability and asset structure have a negative and significant effect on capital structure, while sales growth has no significant effect on capital structure