ANALYSIS OF FACTORS AFFECTING THE CAPITAL STRUCTURE IN INDONESIA STOCK EXCHANGE

This study aimed to analyze the factors affecting the capital structure of the enterprise. Variables used profitability, size, tangibility, growth, earnings volatility, liquidity, and business risk. This study uses a quantitative approach to the analysis of multiple linear models. This study used a sample of manufacturing business entity registered in Indonesia Stock Exchange period 2009 - 2013. The samples used in this study were 328 observations. The results showed that the variables of profitability and earnings volatility significantly negative effect on the capital structure (debt). Variable size, tangibility, and positively affect growth significantly to capital structure (debt). However, the study also found that variable liquidity and business risk significantly negative effect on the capital structure (debt)