Analysis Capital Structure in Indonesia Stock Exchange

Abstract

Capital structure is a mix of funding composition in a company, which will have an impact on the cost of capital and company value. This research was conducted to analyze the effect of asset structure, profitability, firm size, business risk and asset growth on capital structure in the mining, agriculture and Food & Beverage sectors. The sampling method used purposive sampling, obtained 14 samples of mining companies, 9 samples of agricultural companies and 11 samples of Food & Beverage during the period 2010-2014. The results of the study show that in the mining sector asset structure, profitability and business risk affect the capital structure, while the size of the company and the growth of the company do not. In the agricultural sector capital structure is influenced by asset structure, profitability, company size, business risk and company growth. In the F & B sector, asset structure, profitability and business risk affect the capital structure, while the size of the company and the growth of the company do not.