THE INFLUENCE OF FIRM SIZE, BUSINESS RISK, AND PROFITABILITY TOWARD CAPITAL STRUCTURE OF PHARMACEUTICAL COMPANIES PERIOD 2009-2012

Abstract

This research was conducted to examine the influence of variable Firm Size, Business Risk, and Profitability of the Capital Structure. The type of data that used in this research is using secondary data of pharmaceutical companies from quarterly financial statements derived from the Indonesian Stock Exchange (IDX) with the period 2009-2012. Sampling technique in this research is using purposive sampling. Purposive sampling technique was used with criteria; (1) Listed in Indonesia Stock Exchange as a public company until the end of 2012, (2) Companies listed in Indonesia Stock Exchange is a pharmaceutical company, (3) Active stocks traded during the period of observation, from 2009 to 2012, (4) Publish financial statements periodically during the observation period from 2009 through 2012 completely. From the observation period 2009-2012 obtained a total sample of 6 pharmaceutical companies that listed on the IDX and with the amount of data as 96 data. This research analyzed using multiple regressions. Based on the results of the research indicate that the firm size and profitability variables has a significant positive effect. Meanwhile business risk variable does not affect the capital structure. The effect of variable firm size, business risk and profitability on the capital structure has 70%, while the remaining 30% is influenced by other factors outside the study variables.