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Capital Structure Policy Of Manufacturing Companies In Indonesia
Mayasari; S.Sulastri

Universitas Pendidikan Indonesia


Abstract

This study aims to analyze Trade-Off Theory and Pecking Order Theory as the basis of the capital structure policy of manufacturing companies in Indonesia as one of the countries with the dominance of banks as a source of corporate sector funding. The research method used is descriptive verification method. Verification testing is done to examine the influence of capital structure determinants which consist of liquidity, profitability, institutional ownership, tangibility, company growth, and efficiency. This study will also examine the moderating effect of firm size on the relationship of capital structure and its determinant factors. The research sample is a company in the manufacturing industry sector which is listed on the Indonesia Stock Exchange, during the period 2005-2017. Sampling uses purposive sampling technique, while the analysis technique uses panel data regression.

Keywords: Banking oriented country, Capital Structure, Manufacturing Firm, Pecking Order Theory, Trade Off Theory

Topic: Financial Management and Accounting

Link: https://ifory.id/abstract/ML7VPzkQJHwj

Conference: The 4th Global Conference on Business, Management and Entrepreneurship (GCBME 2019)

Plain Format | Corresponding Author (Maya Sari)

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