Date: 23-11-2020 Digital Publication Services : OSREL | JABM | JAM | ABMR | ABMCS

Struktur Modal : Static Trade-off Theory dan Pecking Order Hypothesis Studi Kasus Pada Bursa Efek Indonesia

Detail
Author Winawati
Category Manajemen Perbankan

Abstract

Several studies in finance is testing theory of capital structure. The main purpose of this study is to explain capital structure based static trade-off theory and pecking order hypothesis in Indonesia. Based on static trade-off theory, firmís capital structure is the balance between interests and costs which is related to financing by debt. Based on pecking order hypothesis, firm is financing by order of capital structure by using internal funds derived from retained earning then external funding in the form of debt and equity issuance. Dependent variable in this study is debt ratio as measured by the balance of long-term debt and total assets of the firm. The factors are used to explain the capital structure based on static trade-off theory and pecking order hypothesis include profitability, non-debt tax-shield, tangibility, volatility, and financing deficit. This study is examined non-financial sector which is listed on Indonesian Exchange at period 2014-2015. Purposive sample are used to collect data and the result showed 159 samples and number of observation are 318 observations. In this study use OLS (Ordinary Least Square) and the result showed that profitability has significant relationship with debt ratio as expected by pecking order hypothesis, and the tangibility has significant negative relationship with debt ratio as static trade-off theory. This result showed that Indonesian firms supported static trade-off theory that means capital structure based on optimum debt and also supported pecking order hypothesis.