Variables Affecting the Capital Structure of Agricultural Companies

Abstract

The purpose of this study was to determine whether there is a significant effect of Sales Growth, Company Growth, and Asset Structure on Capital Structure. The research method used is the explanatory method. This study uses secondary data, such as financial statements, annual reports and other information related to the agricultural sector listed on the Indonesia Stock Exchange. The sample was taken as many as 17 companies using the purposive sampling method for the period 2016 to 2020. The data analysis method used in this study is panel data regression. Based on the results of the study, it can be concluded that Sales Growth and Asset Structure have an effect on Capital Structure but Company Growth has no effect on Capital Structure. The suggestions are aimed at companies where the results of this study can be used as a reference in making decisions on the capital structure of agricultural companies, especially company growth, and asset structures that affect capital structure, for investors the results of this study can be used as evaluation material in investment decisions, and for further researchers the results of this study can be used as a reference and can expand the variables and research period.