THE CAPITAL STRUCTURE DETERMINATION OF MANUFACTURING COMPANY IN INDONESIA

Abstract

The aim of this research is to analyze the factor that determines the firm’s capital structure. The population are manufacturing companies in Indonesia. The sampling technique used is purposive sampling, which the characteristics are listed manufacturing company and the data that available at least in three years on the period of 2015-2019. The total samples are 189 manufacturing companies. The research type is quantitative research, using secondary data obtained from Osiris Database. The research use balance panel data estimated by fixed effect model with Stata Software. The results show that size has a significant positive effect on the company’s capital structure, while liquidity and profitability have a negative significant effect on the company’s capital structure.