Research Article
The Effect of Profitability and Company Size on Equity Structure of Pharmaceutical Company Listed on Idx Period 2012 -2017
@INPROCEEDINGS{10.4108/eai.17-7-2019.2302904, author={Agung Fajar Ilmiyono and Mutiara Puspa Widyowati}, title={The Effect of Profitability and Company Size on Equity Structure of Pharmaceutical Company Listed on Idx Period 2012 -2017}, proceedings={Proceedings of the 1st International Conference on Science and Technology in Administration and Management Information, ICSTIAMI 2019, 17-18 July 2019, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICSTIAMI}, year={2021}, month={1}, keywords={profitability company size and capital structure}, doi={10.4108/eai.17-7-2019.2302904} }- Agung Fajar Ilmiyono
Mutiara Puspa Widyowati
Year: 2021
The Effect of Profitability and Company Size on Equity Structure of Pharmaceutical Company Listed on Idx Period 2012 -2017
ICSTIAMI
EAI
DOI: 10.4108/eai.17-7-2019.2302904
Abstract
To carry out its operational activities, the company requires funds. Funds can come from internal or external sources. If internal funds are not able to meet the company's funding needs, then the company must use external funds from the company, for example, debt. The capital structure shows the level of debt usage against the company's shareholders' equity. The high or low capital structure can be influenced by the profitability and firm size. Purpose of this research are for examine and analysis effect of profitability and firm size to capital structure in pharmaceutical sub-sector companies that listed on the Indonesia Stock Exchange for the period 2012-2017. The sample used in this research amounted to 6 companies using multiple linear regression analysis techniques. The result showed that profitability has a negative effect on capital structure, firm size has a negative effect on capital structure, and simultaneously the profitability and firm size influences the capital structure.