The Effect of Profitability, Asset Structure, Business Risk, and Liquidity on Capital Structure in Health Sector Companies Listed on the Indonesia Stock Exchange

Abstract

The purpose of this study was to determine the effect of profitability, asset structure, business risk, and liquidity on the company's capital structure with the control variable of company size to homogenize the sample. The population in this study is the health sector companies listed on the Indonesia Stock Exchange during the 2016-2020 period. The sampling method used purposive sampling technique. Based on the criteria in the selection of samples, one of which is a company that has complete financial statements in the 2016-2020 period, it was found that a number of 14 health companies will be used as samples in this study. The data analysis technique used is panel data regression analysis, using the eviews application. The results showed that profitability had a positive effect on capital structure, then asset structure and liquidity had a negative effect on capital structure. Meanwhile, business risk has no significant effect on capital structure.