ANALYSIS OF FINANCIAL INSTRUMENTS ON CAPITAL STRUCTURE IN TELECOMMUNICATION COMPANIES IN INDONESIA

Publication Date : 01/05/2018


Author(s) :

HERLINA.


Volume/Issue :
Volume 3
,
Issue 2
(05 - 2018)



Abstract :

The purpose of this study are: 1) Knowing whether the variables of profitability, liquidity, business risk, growth and asset structure affect the capital structure partially; 2) Knowing whether the variables of profitability, liquidity, business risk, growth and asset structure affect the capital structure simultaneously. This study uses secondary data. The sample in this study were 35 data originating from telecommunications companies listed on the Indonesia Stock Exchange from 2012 - 2016, and included complete financial report data at that time. Sampling used purposive sampling technique. The analytical method used is multiple linear regression analysis with a classic assumption test first which includes normality test, multicollinearity test, heteroscedasticity test and autocorrelation test. By testing the hypothesis using a simultaneous significant test (F-Test) and a partial significant test (Test-t) and Determination Coefficient (R²) with a standard error of estimate used by 5% or 0.05. Research results: 1) There are partial negative effects significant between profitability and capital structure in telecommunications companies listed on the Indonesia Stock Exchange; 2) Partially there is a negative and significant influence between liquidity and capital structure on telecommunications companies listed on the Indonesia Stock Exchange; 3) Partially there is a negative and significant influence between growth and capital structure on telecommunications companies listed on the Indonesia Stock Exchange; 4) Whereas between business risk variables and asset structure does not affect the capital structure of telecommunications companies listed on the Indonesia Stock Exchange; 5) Simultaneously the variables of profitability, liquidity, business risk, growth and asset structure affect the capital structure of telecommunications companies listed on the Indonesia Stock Exchange.


No. of Downloads :

1