The Determinant of Capital Structure in Mining and Metal Company

Abstract

A mining sector has substantial capital and funding needs. It triggered the go public company to continue to improve its performance to attract investors, especially PMA. The increase in production in this research was measured through the company's capital structure pattern. The variables that were wanted to know the effect on the company's capital structure in the mining sector in ROA, IOS, tangibility assets, taxes, and sales growth. Based on the results of multiple linear regression analysis using panel data with a fixed effect model was as the best model in this research. The test results through the t test showed that ROA, taxes and sales growth had a non-significant effect on the capital structure, while the IOS variables and charges had a significant influence on the development of capital structures. Whereas through a simultaneous test, the independent variables together had a significant effect on the capital structure.

The Influence of Corporate Social Responsibility Disclosure and Capital Structure on Earning Response Coefficient of Indonesian Mining Companies

“…The mining sector has substantial funding needs and in the long-term, relates with the facilities and infrastructures of extracting process. Since the capital structure could be seen from the side of the tangible assets, mining sector shows a capital-intensive structure, then there are needs to borrow from a wide range of different sources (Roosmawarni & Mauliddah, 2019).…”