Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia

Research Article

Pecking Order Theory as a Strengthening Capital Structure

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  • @INPROCEEDINGS{10.4108/eai.13-2-2019.2286027,
        author={Marista  Oktaviani and Mochamad  Mochklas and Ezif Moh Fahmi},
        title={Pecking Order Theory as a Strengthening Capital Structure},
        proceedings={Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia},
        publisher={EAI},
        proceedings_a={ICBLP},
        year={2019},
        month={10},
        keywords={capital structure return on equity current ratio growth dividend policy},
        doi={10.4108/eai.13-2-2019.2286027}
    }
    
  • Marista Oktaviani
    Mochamad Mochklas
    Ezif Moh Fahmi
    Year: 2019
    Pecking Order Theory as a Strengthening Capital Structure
    ICBLP
    EAI
    DOI: 10.4108/eai.13-2-2019.2286027
Marista Oktaviani1,*, Mochamad Mochklas1, Ezif Moh Fahmi1
  • 1: Universitas Muhammadiyah Surabaya
*Contact email: maristaokta48@gmail.com

Abstract

The purpose of this study is to determine the pecking order theory as a reinforcement of capital structure based on consumption sector companies that are listed on the IDX. This research uses dividend policy moderation which influences growth on capital structure. The 2014-2017 research period collected data using documentation techniques with a sample of 122 consumption sector companies listed on the IDX, data analysis using WarpPLS. The results of ROE and Current Ratio have a significant positive effect on capital structure, growth has a positive but not significant impact on the capital structure, and dividend policy cannot moderate the growth of capital structure.