Title: INFLUENCE OF INTERNAL FACTORS AND EXTERNAL FACTORS ON THE FINANCIAL STRUCTURE OF MANUFACTURING COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE PERIOD 2011-2015
Author: Widy Taurus Sandy
Item Type: Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The ratio of total debt to total assets in the various industrial sectors is 0.6465, followed by the basic industrial and chemical sectors with a ratio of 0.5584, while the smallest is the consumer goods industrial sector with a ratio of 0.4227. This research seeks to examine the influence of internal factors and external factors of the company on the financial structure of companies listed on the BEI for the period 2011 - 2015. The internal company factors that are the variables in this research are market to book, profitability, company size and tangibility, while the company's external factors are used is the GDP growth variable for the manufacturing sector in Indonesia. The internal and external factors of the company are seen as their influence on the company's financial structure which is calculated using the short term leverage ratio, long term leverage ratio and total debt leverage ratio approaches. The sample of this research is 102 manufacturing companies listed on the Indonesia Stock Exchange during the period 2011 - 2015. The results of the research show that the market to book ratio has a significant positive influence on the long term leverage ratio and total debt leverage ratio, while the market to book ratio has a significant positive influence on the long term leverage ratio and the total debt leverage ratio. positive is not significant for the short term leverage ratio. Return on assets as a measurement of profitability level has a significant negative influence on the short term leverage ratio, long term leverage ratio and total debt leverage ratio. Firm size has a significant positive influence on the short term leverage ratio, long term leverage ratio, and total debt leverage ratio. Tangibility has a significant negative effect on the short term leverage ratio and total debt ratio, but tangibility has a significant positive effect on the long term leverage ratio. Manufacturing sector GDP growth has a positive and significant influence on the short term leverage ratio, long term leverage ratio, and total debt leverage ratio.
Keywords: Financial Structure, market to book, profitability, firm size, tangibility, GDP growth
Sources: http://repository.unair.ac.id/64887/
