Factors Affecting Capital Structure

Abstract

This study aims to analyze the effect of asset growth, liquidity, asset structure, and company size on the capital structure of mining companies listed on the Indonesia Stock Exchange for the period 2019–2022. This study uses a quantitative approach with an explanatory method. The data used is secondary data in the form of companies' annual financial reports. The research sample was determined using purposive sampling and resulted in 27 companies with a total of 108 observations. Data analysis was performed using multiple linear regression with the help of SPSS software, after testing classical assumptions. The results show that simultaneously, all independent variables have a significant effect on capital structure. Partially, liquidity has a negative and significant effect on capital structure, while asset growth, asset structure, and company size show a negative but insignificant effect. These findings indicate that mining companies tend to prioritize the use of internal funds in making financing decisions, especially in uncertain economic conditions.