The Company Management’s Internal Strategy Aims to Enhance the Economic Stability in the Capital Structure of Infrastructure Companies Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.47747/snfmi.v3i1.3214Abstract
The purpose of this study is to measure the independent factor that will affect capital structure of some companies that listed in IDX as infrastructure companies, the measurement will be used to obtain empirical data as evidence regarding a positive negative or no effect of business risk, firm size, profitability, liquidity and firm growth on the dependent variable of the company. The number of companies that used on this study was 25 companies that divided using purposive sampling method and match with the criteria that determined in this research and rules. The number of observations with 7 years measurement was 175 observations times with 5 independent variables and 1 dependent variable each company have. The final result of this research are independent variables; business risk and profitability have no effect to company’s capital structure. The independent variables; firm size and firm growth have positive impact to company’s capital structure. And the independent variable; liquidity have negative impact to company’s capital structure. This result and evidence of this research is provided for the usage of managers or company’s owner to the terms of manage their capital structure weighting, especially using debt to indirectly reach company’s goal. And for investors, is to measure the increase of firm’s value of a company to indicate for investors.
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