This study aims to determine and analyze the effect of company's size, business risk, asset growth, and profitability on capital structure in manufacturing companies listed on the stock exchange of Indonesia year 2014 -2016, either partially or simultaneously. In addition, this study also reviewed variables used due to differences in previous research results. The type of data used is secondary data in the form of financial statements obtained from the Indonesian Capital Market Directory 2014 -2016 period. The sampling technique used cluster proportional random sampling or group sample. This method is used because listed manufacturing companies listed in Indonesia Stock Exchange are heterogeneous, sampling to represent each element listed in Indonesia Stock Exchange based on business type, so that 25 companies in this research are obtained. Variable in this research there are two that is; Independent variables include firm size, business risk, asset growth, and profitability. As for the dependent variable is the capital structure of the manufacturing company. This research is analyzed by using multiple regression. Based on the results of the study showed that during the study period partially firm size (SIZE) have a positive and significant effect and profitability (NPM) has a negative and significant effect. While business risk (DOL) and asset growth (GROW) have no effect on capital structure. The magnitude of this effect is 0.096 or 9.7%. While the rest of 90.4% influenced by other factors outside the study or outside the regression equation.
The purpose of this research is to understand the profitability of finance companies in Indonesia. The method of research using a time series analysis. The data used are secondary data sourced from the Financial Sevices Authority. The method of analysis used in this research is the graph method using Smart PLS software. The results show that the profitability of finance companies in Indonesia has decreased in the graph of financing profitability in the previous period.
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