THE EFFECT OF INTEREST LEVEL AND PROFITABILITY ON CAPITAL STRUCTURE OF MANUFACTURING COMPANIES AT FOOD AND BEVERAGES SUB SECTORS LISTED IN INDONESIA STOCK EXCHANGE IN 2012-2014 PERIOD

Jurnal Manajemen Prima, Volume VI, Nomor II, Juli 2016

Jum'at, 20 Oktober 2017 09:06 | Sudah dibaca 21 kali

The capital structure is the ratio or the balance between long-term debt with its own capital. In taking the decision to accept investment from outside parties, companies should consider the prevailing interest rate. However, companies with a high level of profitability should use retained earnings rather than using debt. Based on the brief description, then the problem is formulated as the following how is the effect of interest rates and the profitability on the capital structure in the manufacturing companies sub-sectors food and beverages listed on the Indonesia Stock Exchange in 2012-2014. The theories used in this research are theories of accounting, relating to profitability, Interest Rate and Capital Structure. The method used is deductive approach, this type of research is quantitative, and the nature of research is deductive. Data were collected by documentation through secondary data collection. Model of analysis used is multiple linear regression analysis. The populations were 16 manufacturing companies sub-sectors of food and beverages listed on the Indonesia Stock Exchange in the period of 2012-2014. The samples consisting of 12 companies were drawn by using purposive sampling technique multiplied by three periods, that 36 data were derived. Results of the research on the hypothesis showed that profitability and interest rates simultaneously and partially have a significant effect on the capital structure. It is concluded that simultaneously and partially profitability and interest rates do not affect the company's capital structure at the manufacturing companiesat sub-sectors of food and beverages listed on the Indonesia Stock Exchange in 2012-2014.

Kata Kunci: Interest Rate, Profitability, Capital Structure