Determinants of Capital Structure of Multinational Companies (Empirical Study on the Indonesia Stock Exchange)
Journal Title: Account and Financial Management Journal - Year 2024, Vol 9, Issue 11
Abstract
This study aims to provide empirical evidence of the effect of business risk, profitability, asset growth and asset structure on the capital structure of multinational companies on the Indonesia Stock Exchange. The population of this study are manufacturing companies listed on the Indonesia Stock Exchange for the period 2018-2022. The sampling technique uses purposive sampling. Data collection using documentation, secondary data sources in the form of company financial reports. Data analysis using multiple linear regression panel data with the eviuws 13 programme. The results found that business risk affects the capital structure of multinational companies. Profitability affects the capital structure of multinational companies. Asset growth has no effect on the capital structure of multinational companies. Asset structure negatively affects the capital structure of multinational companies. Further research is expected to consider adding other variables that influence the capital structure of multinational companies such as liquidity and tangibility variables. In addition, it is also expected to examine the relationship between independent variables, as well as using different samples and populations from this study.
Authors and Affiliations
Rizki Wahyu Utami Ohorella , Herman Darwis
Keywords
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- EP ID EP751884
- DOI 10.47191/afmj/v9i11.01
- Views 79
- Downloads 0
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