COMPANY'S CAPITAL STRUCTURE MODELS
Keywords:
Liquidity, Business Risk, Tangibility Assets, Non-Debt Tax Shield, Asset GrowthAbstract
The purpose of this study is to analyze the factors that influence the capital structure and to determine how much influence the independent variables (liquidity, business risk, tangibility assets, non-debt tax shield and asset growth) on the capital structure. To achieve the research objectives, it used listing companies on retail industry of the Indonesia Stock Exchange for period 2018-2020 and 18 companies were selected as samples using purposive sampling technique. Type of research is applied research. This study uses panel data regression to determine the effect of each independent variable on the capital structure. The results show that non-debt tax shield, tangibility assets, and asset growth affect the capital structure. Meanwhile, liquidity and business risk has no effect on capital structure. The results of the study are expected to be information for the company in determining the capital structure and to be considering the factors that affect on capital structure.
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