AN ANALYSIS OF FACTORS INFLUENCING CAPITAL STRUCTURE IN MINING COMPANIES (EMPIRICAL STUDY ON COAL SUBSECTOR LISTED IN INDONESIA STOCK EXCHANGE YEAR 2014-2016)

Abstract

The purpose of this research is examining the factors which influence capital structure in mining companies on coal subsector listed in Indonesia Stock Exchange during 2014-2016. Those factors are profitability, business risk and Asset Structure. This research sample was selected by purposive sampling method. The sample was taken from nine listed mining companies on coal subsector in Indonesia Stock Exchange. Analysis methods, which were used, are the assumptions of classical test, Goodness of fit test and multiple linear regression Analysis. The result of multiple linear regression shows that capital structure is significantly influenced by business risk. And the result of adjusted R2 is 24.3%, which means that profitability, business risk and asset structure just explains 24.3% of capital structure variable.