Analysis of the Influence of Asset Structure and Sales Growth on Capital Structure and its Impact on Corporate Profitability

Abstract

This study aimed to determine the effect of asset structure and sales growth on capital structure and its impact on corporate profitability. The population in this study was food and beverage companies listed on the Indonesia Stock Exchange. Sampling technique used purposive sampling technique, and the number of samples used as many as 9 companies. The method used was multiple linear regression analysis. The results showed that the assets structure affect the capital structure. While sales growth did not affect the capital structure. The asset structure and sales growth had no effect on profitability.

The Analysis of Factors Affecting Profitability

“…These results are in line with research conducted [32] which shows the results that asset structure has a negative effect on return on assets. However, the results of this study are not in line with the researcher [20] who showed that the asset structure does not have a negative effect on return on assets. It's not in line with research [16] which shows that asset structure does not have a positive effect on return on assets.…”

“…In measuring the Asset Structure variable, using a proxy that is in accordance with research from [20] using the TANG symbol where the formula is as follows;…”