THE EFFECT OF LIQUIDITY AND ASSETS STRUCTURE ON CAPITAL STRUCTURE WITH COMPANY SIZE AS A CONTROL VARIABLE ON MANUFACTURING COMPANIES IN THE INDONESIA STOCK EXCHANGE

Abstract

The purpose of this study was to examine whether or not the influence of the independent variables of liquidity and asset structure on capital structure with firm size as a control variable. The object of this research is a manufacturing company listed on the Indonesia Stock Exchange (IDX) which is engaged in the consumer goods industry sector for the period 2017 to 2020. Research data collection is carried out by using documentation techniques on the sample company financial statement items. By using purposive sampling, the final sample size was 35 company.

The research hypotheses were tested using multiple linear regression analysis Hypothesis test results. The results showed that the independent variable liquidity had a significant negative effect on capital structure. The independent variable of asset structure has no significant positive effect on capital structure. And the control variable firm size has no significant positive effect on capital structure.