Determinant of Capital Structure of Coal Sub-Sector Mining Companies Listed on Indonesia Stock Exchange


Authors : Seven Marganda Bako; Bambang Santoso Marsoem

Volume/Issue : Volume 5 - 2020, Issue 9 - September

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/342LO1n

This study aims to test the determinant of the capital structure consisting of variable profitability proxified by return on asset (ROA), asset structure, liquidity projected with current ratio (CR) and the size of the company against the structure of capital in the mining business of the coal subsector listed on the Indonesia Stock Exchange in 2014-2018. This research sample was obtained by purposive sampling method. Based on the criteria for selection of the sample, 10 companies were sampled for the study. The data analysis technique used is the regression of the data panel with the selected model random effect model. . The Value Adjusted R-square (R²)=0.434760 means that independent variables are able to explain the variation of dependent variables by 43.47%, while the remaining 56.53% is explained by other factors beyond this study. The F test of 0.00000 is smaller than the level of significance of α=0.05, noting that simultaneously independent variables have a significant effect on the capital structure. The results show liquidity variables had a significant negative effect on the capital structure. While variable profitability, asset structure and size of the company have no effect on the capital structure

Keywords : Capital Structure, Profitability, Asset Structure, Liquidity, Size of Business

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