THE EFFECT OF ASSET STRUCTURE, COMPANY SIZE AND PROFITABILITY ON CAPITAL STRUCTURE IN BASIC AND CHEMICAL INDUSTRY SUB-SECTOR MANUFACTURING COMPANIES LISTED ON IDX 2014-2017 PERIOD

Abstract

The purpose of this study is to test and determine the results of the effect of asset structure, company size and
profitability on capital structure in basic industrial and chemical sub-sector companies listed on the Indonesia Stock
Exchange for the period 2014-2017. In this research, the method used is the quantitative approach method with
descriptive research type and the nature of the research is descriptive explanatory, the data is taken indirectly
through the website www.idx.co.id. Where the population used is 64 companies resulting in 22 sample companies
using purposive sampling technique based on certain criteria. The data analysis method used is multiple linear
regression analysis. So that the results of the research that has been done on the hypothesis show that partially the
Asset Structure and Company Size have no and insignificant effect on Capital Structure, and Profitability has a
negative and significant effect on Capital Structure and simultaneously that the three variables have a positive effect
on Capital Structure with the coefficient determination of 19.1%.