FACTORS IN CAPITAL STRUCTURE AND ITS INFLUENCE ON TOTAL DEBT RATIO OF AUTOMOTIVE INDUTRY

FILIA NINDIANI; ERIKA JIMENA ARILYN

doi:10.34208/jba.v21i1a-2.757

FACTORS IN CAPITAL STRUCTURE AND ITS INFLUENCE ON TOTAL DEBT RATIO OF AUTOMOTIVE INDUTRY

Authors

FILIA NINDIANI Trisakti School of Management
ERIKA JIMENA ARILYN Trisakti School of Management

DOI:

https://doi.org/10.34208/jba.v21i1a-2.757

Keywords:

Total debt ratio, Capital structure, Trade-off theory, Pecking order theory

Abstract

The purpose of this study is to get the empirical results about determinant factors in capital structure and its influence on total debt ratio. Liquidity, growth opportunities, firm size, profitability, and firm age is used as the independent variables. Data of 8 automotive companies listed on IDX were collected for the period of 19982016 (19 years). The data is collected from secondary data by analyzing the financial statement of sample companies. Panel data analysis has been used to find out the regression based on data collection. Findings of this research showed that liquidity, profitability, and firm age have an influence partially on total debt ratio. While growth opportunities and firm size have no influence partially on total debt ratio.

Published

2020-06-30

How to Cite

NINDIANI , FILIA, and ERIKA JIMENA ARILYN. 2020. “FACTORS IN CAPITAL STRUCTURE AND ITS INFLUENCE ON TOTAL DEBT RATIO OF AUTOMOTIVE INDUTRY ”. Jurnal Bisnis Dan Akuntansi 21 (1a-2):203-10. https://doi.org/10.34208/jba.v21i1a-2.757.