Abstract:
This research purposed to examine the influence of capital structure to the firm
performance of Manufacturing Companies registered in the IDX. The population
amounted to all 238 companies in September, 2021. Moreover, the sample used is
24 companies from 14 sub-sectors for the period of 2014 to 2021 with 192 total
observation data. Quantitative technique is applied as the method; the data being
used is secondary data which gathered from IDX and each company’s website.
There are four independent variables namely DAR, DER, LDCE, EAR, and two
controlling variables namely AGE and TANG will be tested in order to generate
evidence whether those variables have relationships toward the ROA as dependent
variable. This research aimed to discover the results of descriptive statistics
analysis, classical assumption test, panel data regression model, and multiple
regression analysis. Furthermore, the hypotheses will be tested using T-test to find
the partial influences, and F-test to find the simultaneous influences of independent
and controlling variables toward dependent variable. Among independent variables,
DER, LDCE, AGE, and TANG have negative influences toward ROA. Meanwhile,
DAR and EAR, have positive effects toward ROA. Furthermore, all variables have
weakly explained ROA which amounted to 24.42 percent.
