ANALYSIS OF FACTORS THAT INFLUENCE THE CAPITAL STRUCTURE

Abstract.The industry that has been increasingly needed in recent time is the automotive and spare parts company. Based on the consideration of the importance of establishing a capital structure for the continuity of the company, it encourages researcher to conduct research on the factors that affect the capital structure of automotive and spare parts company on the Indonesia Stock Exchange. This study aims to test whether the capital structure, ROA, company size and the growth of the sales affect the capital structure of automotive and spare parts company on the Indonesia Stock Exchange. The analysis in this study used multiple linear regression. The sampling method that is used in this study is the purposive sampling method. The data is taken from the company’s annual financial statements on the Indonesia Stock Exchange from 2011 to 2017. The result of this study indicate that the asset structure has a positive effect on capital structure, ROA does not affect the company’s value, the size of the company negatively affects the capital structure and sales growth does not affect the capital structure. Keywords : Asset structure, Profitability, Firm Size, Sales Growth