Current Volume 7
Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure
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).
Citations
IRE Journals:
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
IEEE:
Denny Hambali , Reza Muhammad Rizqi
"Analysis of the Effect of Profitability, Liquidity and Assets Structure on Capital Structure" Iconic Research And Engineering Journals, 7(7)
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12