Determinants of Capital Structure in Companies Listed in The Jakarta Islamic Index

  • Uus Ahmad Husaeni State Islamic University of Sharif Hidayatullah and Suryakancana University, Indonesia.
Keywords: Capital structure, Internal factors, Multiple regression, Sharia issuer, Jakarta Islamic Index

Abstract

Capital structure is permanent financing consisting of long-term debt, preferred stock, and shareholder capital. Therefore, it is necessary to examine whether internal factors including company size, liquidity, ROA (Return on Assets) and sales growth affect the capital structure of companies listed in the Jakarta Islamic Index. This study aims at examining the effect of company size, liquidity, ROA and sales growth on the capital structure. The analysis used in this study was a multiple linear regression analysis. The results showed that company size, liquidity, ROA and sales growth have a significant influence on the capital structure of companies listed in the Jakarta Islamic Index, while the rest was explained by other factors not included in this study.

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Published
2018-12-28
How to Cite
Husaeni, U. A. (2018). Determinants of Capital Structure in Companies Listed in The Jakarta Islamic Index. International Journal of Economics, Management and Accounting, 26(2), 443-456. Retrieved from https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/504
Section
Articles