Impact of liquidity, asset structure, and business risk on capital structure of automotive and component companies

  • Inti Nuswandari Universitas IPWIJA
  • Estuti Fitri Hartini Universitas IPWIJA
  • Edi Wibowo Universitas IPWIJA
  • Amika Yulianingsih Universitas IPWIJA
  • Agus Jenal Mutakin Universitas IPWIJA
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Abstract

This study aims to analyze the impact of Liquidity, Asset Structure, and Business Risk on Capital Structure with a population of Automotive and Component companies listed on the Indonesia Stock Exchange (IDX) during the 2015-2019 observation period. The sample selection used purposive sampling technique. A sample of 12 companies was obtained through the Indonesia Stock Exchange website (https://www.idx.co.id/). This study uses secondary data obtained through the company's financial statements. Data analysis technique using multiple linear regression.
The explanation of the research results shows that the capital structure is negatively and significantly affected by liquidity, the asset structure has a negative and significant effect on the capital structure, as well as business risk which has a negative and significant effect on the capital structure.
Keywords: Liquidity, Asset Structure, Business Risk, and Capital Structure.

Author Biography

Estuti Fitri Hartini, Universitas IPWIJA

This author has an accounting background. 

Published
2023-12-07
How to Cite
Nuswandari, I., Hartini, E., Wibowo, E., Yulianingsih, A., & Mutakin, A. (2023). Impact of liquidity, asset structure, and business risk on capital structure of automotive and component companies. Indonesian Journal of Business, Accounting and Management, 6(02), 57 - 66. https://doi.org/10.36406/ijbam.v6i02.974
Section
Articles