The Influence of Internal and External Indicators of Companies the Speed of Adjustment of Capital Structure

Hendratno Hendratno, Disman Disman, Nugraha Nugraha

Abstract

This research examines the influence of 4 (four) independent variables, which are Profitability (X1), Liquidity (X2), Deviden Payout Ratio (X3), and Foreign Exchange (X4), on the dependent variable of the Speed of capital structure adjustment. In the previous period , the researchers focused on the optimal capital structure in order to increase the value of the companiesy by choosing the optimal portion of Debt and Equity. The research subjects are listed companies in BEI during the period 2009-2015 which include a population of 357 issuers, while the sampling comprises 158 companies. Conducted a descriptive verifikatif character of causality. The purpose of this study is to solve the problem openly, that has been done by many researchers, by analyzing the effect of Profitability, Liquidity, Deviden Payout Ratio and Foreign Currency on the speed of adjustment of capital structure simultaneously or partially. The data analysis in this study employed the technique of panel data regression analysis using Eviews 8.0 software. This study resulted in a combination of Profitability (PROF) and Foreign Exchange Rate (KURS) which can explain or influence the dependent variable The capital structure adjustment rate (SoA) is 75.73%, while the rest is 24.27% influenced by other variables outside the research which are not involved in this model. The results of this study also show that simultaneously Profitability (X1), Liquidity (X2), Deviden Payout Ratio (X3) and Foreign Exchange (X4) have a significant effect on capital structure adjustment speed (SoA). The partial test results showed that PROF and KURS significantly influence the positive direction toward SoA, while the liquidity variable (LIKU) and deviden payout ratio (DPR) have no effect on SoA.

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Paper Citation


in Harvard Style

Hendratno H., Disman D. and Nugraha N. (2017). The Influence of Internal and External Indicators of Companies the Speed of Adjustment of Capital Structure.In Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship - Volume 1: GC-BME, ISBN 978-989-758-333-9, pages 59-63. DOI: 10.5220/0007114800590063


in Bibtex Style

@conference{gc-bme17,
author={Hendratno Hendratno and Disman Disman and Nugraha Nugraha},
title={The Influence of Internal and External Indicators of Companies the Speed of Adjustment of Capital Structure},
booktitle={Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship - Volume 1: GC-BME,},
year={2017},
pages={59-63},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007114800590063},
isbn={978-989-758-333-9},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship - Volume 1: GC-BME,
TI - The Influence of Internal and External Indicators of Companies the Speed of Adjustment of Capital Structure
SN - 978-989-758-333-9
AU - Hendratno H.
AU - Disman D.
AU - Nugraha N.
PY - 2017
SP - 59
EP - 63
DO - 10.5220/0007114800590063