Factors Affecting Capital Structure

Abstract

This study examined the partial effects of Asset Growth, Liquidity, Asset Structure, and Firm Size on Capital Structure in mining companies listed on the Indonesia Stock Exchange from 2019-2022. The population in this study consisted of 64 mining companies listed on the Indonesia Stock Exchange from 2019-2022. The sampling technique used was purposive sampling, resulting in a sample of 27 companies. The data analysis technique used was simple linear regression. The study results indicate that Asset Growth, Asset Structure, and Company Size do not significantly affect Capital Structure.
In contrast, Asset Growth has a substantial effect on Capital Structure. The regression analysis results indicate that the R-squared value is 33.8%. This means that 33.8% of the variation in capital structure can be explained by the variables Asset Growth, Liquidity, Asset Structure, and Company Size. In comparison, the remaining 66.2% is explained by other variables not investigated in this study.