The Impact of Company Size, Asset Structure and Profitability on Capital Structure of the Automotive Sector Companies Listed in Indonesia Stock Exchange

Abstract

This research’s purpose is to analyze the influence of firm size, asset structure and the profitability toward capital structure in automotive sector companies listed on the Indonesia stock exchange (BEI). The sample of this research used purposive sampling technique in line with criteria of automotive sector manufacturing company listed on BEI and publish the result of financial report and present the data completely including data from the variables in the research period (June 2012- July 2017), so it has 7 companies as the sample. To analyze the data, the researcher used multiple linear regression. The result of this research showed that there was no significant influence of firm size to capital structure. There was significant influence of asset structure to capital structure. There was no significant influence of profitability to capital structure. There was significant influence of firm size, asset structure and profitability toward capital structure.