THE EFFECT OF LIQUIDITY , GROWTH, PROFITABILITY, AND COMPANY SIZE ON CAPITAL STRUCTURE IN CONSUMER GOODS COMPANIES ON THE INDONESIA STOCK EXCHANGE FOR THE 2016-2020

Syifa Sonia Putri; Miswanto Miswanto

Authors

Syifa Sonia Putri STIE YKPN Yogyakarta
Miswanto Miswanto STIE YKPN Yogyakarta

Keywords:

liquidity, growth, profitability, company size, capital structure

Abstract

This study aims to examine whether there is an effect of liquidity, growth, profitability, company size on the capital structure of consumer goods companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. In this study, the population used was consumer goods companies listed on the IDX for the 2016-2020 period. The selection of samples was carried out using purposive sampling and obtained 42 companies as samples. The analytical method used in this research is by using multiple regression analysis model with panel data. The results showed that liquidity and profitability had a significant and negative effect on capital structure. Meanwhile, company size and growth have a significant and positive effect on capital structure.

Downloads

Download data is not yet available.

References

Adiyana, I. B. G. N. S., & Ardiana, P. A. (2014). Effect of Company Size, Business Risk, Asset Growth, Profitability and Liquidity Level on Capital Structure. Udayana University Accounting E-Journal, 9(3), 788–802.

Andika, I. K. R., & Sedana, I. B. P. (2019). Effect of Profitability, Asset Structure, and Company Size on Capital Structure. Udayana University Management E-Journal, 8(9), 5803–5824. https://doi.org/10.24843/EJMUNUD.2019.v08.i09.p22

Anuar, H., & Chin, O. (2016). The Development of Debt to Equity Ratio in Capital Structure Model: A Case of Micro Franchising. Procedia Economics and Finance, 35, 274–280. https://doi.org/10.1016/S2212-5671(16)00034-4

Armelia, S. (2016). The Influence of Company Size, Profitability, Liquidity and Active Structure on the Capital Structure of Manufacturing Companies Going Public. JOM FISIP, 3(2), 1–13.

Bhawa, I. B. M. D., & Dewi, M. R. (2015). Effect of Company Size, Liquidity, Profitability, and Business Risk on the Capital Structure of Pharmaceutical Companies. Unud Management E-Journal, 4(7), 1949–1966.

Brigham, E. F., & Houston, J. F. (2006). Fundamentals of Financial Management (2nd ed.). Rajawali Press.

Chang, C.-C., Batmunkh, M.-U., Wong, W.-K., & Jargalsaikhan, M. (2019). Relationship between Capital Structure and Profitability: Evidence from Four Asian Tigers. SSRN Electronic Journal, 22(2), 54–66. https://doi.org/10.2139/ssrn.3411977

Collis, R. (2013). The Pecking Order Theory of Capital Structure Choice: The Barbados Experience. University of Leicester, 1–105.

Dewi, C. R., & Fachrurrozie, F. (2021). The Effect of Profitability, Liquidity, and Asset Structure on Capital Structure with Firm Size as Moderating Variable. Accounting Analysis Journal, 10(1), 32–38. https://doi.org/10.15294/aaj.v10i1.44516

Dewi, N. K., & Badjra, I. B. (2012). Effect of Liquidity, Profitability, Tangibility Assets, Company Size and Taxes on Capital Structure. Unud Management E-Journal, 3(10), 3017–3033.

Dewi, P.S., & Wirama. (2017). Pecking Order Theory: The Effect of Firm Profitability and Growth on Corporate Funding Decisions. Udayana University Accounting E-Journal, 18(3), 2423–2450.

Dewiningrat, A. I., & Mustanda, I. K. (2018). Effect of Liquidity, Profitability, Sales Growth, and Asset Structure on Capital Structure. Unud Management E-Journal, 7(7), 3471–3501.

Fahmi, I. (2012). Analysis of Financial Statements (4th ed.). Alphabet.

Febriyanti, A.D. (2017). Effect of Company Size, Profitability, Liquidity and Sales Growth on Capital Structure. Journal of Management Science and Research, 6(5), 2–19.

Ghasemi, M., & Razak, N. H. (2016). The Impact of Liquidity on the Capital Structure: Evidence from Malaysia. International Journal of Economics and Finance, 8(10), 130–139. https://doi.org/10.5539/ijef.v8n10p130

Halim, P. M., & Widanaputra, A. A. G. P. (2018). Effect of Company Size, Sales Growth and Business Risk on Capital Structure. E-Journal of Accounting, 23(3), 2391–2413. https://doi.org/10.24843/EJA.2018.v23.i03.p29

Ismail, A. (2015). Factors Influencing Capital Structure in Property and Real Estate Companies. Journal of Resource Management Economics, 17(1), 1–7.

Kartika, A. (2016). The Influence of Profitability, Asset Structure, Sales Growth and Company Size on the Capital Structure of Manufacturing Companies on the Indonesia Stock Exchange. INFOKAM Scientific Journal, 12(1), 49–58.

Cashmere. (2007). Banking Management (first). Jakarta: PT RajaGrafindo Persada.

Cashmere. (2008). Financial Statement Analysis. Jakarta: RajaGrafindo Persada.

Kennedy, Azlina, N., & Suzana, A. R. (2011). Factors Affecting Capital Structure in Real Estate and Property Companies that Go Public on the Indonesia Stock Exchange. Journal of Economics, 19(02), 791–801.

Kurniasari, E. (2021). The Effect of Liquidity, Profitability, and Asset Structure on the Company's Capital Structure. Cafeteria Journal, 2(2), 1–14.

Kurniawan, I. S. (2019). The influence of corporate governance, profitability, and corporate leverage on environmental disclosure. Economic Forum, 21(2), 165–171.

Kusna, I., & Setijani, E. (2018). Analysis of the Influence of Financial Performance, Growth Opportunity and Company Size on Capital Structure and Firm Value. Journal of Management and Entrepreneurship, 6(1), 93–102. https://doi.org/10.26905/jmdk.v6i1.2155

Lasut, S. J. D., Rate, P. V., & Raintung, M. C. (2018). The Effect of Company Size, Profitability, and Liquidity on Capital Structure in Automotive Companies Listed on the Indonesia Stock Exchange for the 2012-2015 Period. EMBA Journal, 6(1), 11–20.

Machfuedz. (1996). Management Accounting for Short Term Planning and Decision Making (5th ed.). STIE Widya Wiwaha, Yogyakarta.

Masodah, & Mustikaningrum, F. (2009). The Influence of Profitability, Size, and Capital Structure on Delays in Publishing Financial Reports of Go Public Companies in the Miscellaneous Industry Sector and the Basic Industry and Chemical Sectors. PESAT Proceedings (Psychology, Economics, Literature, Architecture & Civil), 3(1), 56–64.

ita. Dian, & Tania, I. (2018). Effect of Debt To Equity Ratio (Der), Debt To Asset Ratio (Dar), and Long Term Debt To Equity Ratio (Lder) on Profitability. Journal of Accounting, 5(2), 132–137. https://doi.org/10.5281/ZENODO.1311575

Miswanto, M., & Aslan, V. S. (2019). Financial Performance Analysis: After and Before the 2008 Global Economic Crisis in Manufacturing Companies in Indonesia. Journal of Accounting, Auditing and Finance, 16(1), 22–40.

Miswanto, M., Setiawan, A. Y., & Santoso, A. (2022). Analysis of the Effect of Sales Growth, Asset Structure, and Profitability on Capital Structure. Maksipreneur Journal: Management, Cooperatives, and Entrepreneurship, 11(2), 212–226.

Mujiatun, S. (2021). Effect Of Profitability And Asset Structure On Capital Structure (In Sharia Based Manufacturing Companies in Indonesia Stock Exchange in 2016-2019 Period). Proceeding International Seminar on Islamic Studies, 2(1), 27–28.

Murhadi, W. R. (2012). Determinants of Capital Structure: Studies in Southeast Asia. Journal of Management and Entrepreneurship, 13(2), 91–98. https://doi.org/10.9744/jmk.13.2.91-98

Myers, S.C. (2007). The Capital Structure Puzzle. American Finance Association, 39(3), 575–592.

Myers, S. C., & Majluf, N. S. (1984). Corporate Financing And Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics, 13(1), 187–221.

Natalia, P. (2015). The Effect of Profitability, Sales Growth, Asset Structure, and Business Risk on the Capital Structure of Issuers Kompas 100 (Non-Banking). Journal of Management, 14(2), 141–164.

Rahayu, M. (2020). Effect of Liquidity, Profitability and Tangible Assets on Capital Structure. Accounting Study Program, Faculty of Economics & Business, University of Persada Indonesia YAI Jakarta. https://doi.org/Id

Ratri, A. M., & Christianti, A. (2017). The Influence of Size, Liquidity, Profitability, Business Risk, and Sales Growth on Capital Structure in the Property Industry Sector. Journal of Management and Business Research, 12(1), 13. https://doi.org/10.21460/jrmb.2017.121.271

Riyanto, B. (2001). Fundamentals of Corporate Spending (4th ed.). BPFE.

Safitri, H. (2015). The Effect of Size, Growth, and Dividend Policy as a Moderating Variable on Firm Value. Journal of Management Science and Research, 4(6), 1–15.

Santoso, Y. (2016). The Influence of Profitability, Company Size, Asset Structure, Liquidity and Growth Opportunity on the Capital Structure of Manufacturing Companies on the Indonesia Stock Exchange in 2010-2015. Yogyakarta State University.

Šarlija, N., & Harc, M. (2012). The impact of liquidity on the capital structure: A case study of Croatian firms. BSRJ, 3(1), 30–36. https://doi.org/10.2478/v10305-012-0005-1

Sawitri, N. P., & Lestari, P. V. (2015). Effect of Business Risk, Company Size and Sales Growth on Capital Structure. Unud Management E-Journal, 4(5), 1238–1251.

Selfiana, K. E. (2016). Effect of Growth Opportunity, Profitability and Asset Structure on Capital Structure. Journal of Accounting Science and Research, 5(9), 1–17.

Setyawan, A. I. W. (2016). The Effect of Firm Size, Growth Opportunity, Profitability, Business Risk, Effective Tax Rate, Asset Tangibility, Firm Age and Liquidity on the Company's Capital Structure. Journal of Business Administration, 31(1), 108–117.

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374.

Wiagustini, N. L. P. (2010). Fundamentals of Financial Management (1st ed.). Udayana UniversityPress.

Zulkarnain, M. (2020). Effect of liquidity and profitability on capital structure. Economic Forum, 22(1), 49–54.