The Effect of profitability, growth rate, size of the company, and the tangibility to the Capital Structure in the Food and Beverages Industry Listed on the Indonesian Stock Exchange Period 2009-2015

SKRIPSI

Abstract

By : I DEWA AYU SARASWATI

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Faculties : Fakultas Ekonomi dan Bisnis

Department : S1 Akuntansi

The company has the funding needed to carry out its operational activities, but often companies face the problem of lack of funding. Companies have to find other funding sources to solve the problem, both the funds coming from within (internal funds) and funds sourced from outside the company (external funds). The proportion between internal funds and external funds were used by the company called the capital structure. determination of capital structure is a challenge for the company. The optimal capital structure can increase the value of companies as well as reduce the cost of capital incurred by the company. This study aims to determine empirically the effect of profitability, growth rate, size of the company, and tangibility of the company's capital structure. This is examined again because previous studies found no consistency in the results. This research was carried out on food and beverages industry listed in Indonesia Stock Exchange. The sample used in this study amounted to 62. This study used multiple linear regression analysis after passing through the classical assumption test beforehand. Based on the results of hypothesis testing, this study proves that profitability, company size, and tangibility had significant effect on capital structure, while the growth rate had no significant effect on the capital structure. Adversely affected the profitability of capital structure, company size and tangibility while a positive effect on the capital structure.

Keyword : profitability, growth rate, size of company, tangibility, capital structure

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