THE INFLUENCE OF TIME INTEREST EARNED AND PROFITABILITY TOWARDS CAPITAL STRUCTURE (STUDY CASE OF PT. BANK MANDIRI (PERSERO) TBK PERIOD 2009 - 2012)

Abstract

Company in determining the capital structure of corporate funds filled by two factors: it’s by own capital (equity) or by foreign capital (debt) that must be consider several factors. Here Time Interest Earned and Profitability are two from several factors that researcher use to determine the influence of the management of the company in determining the decision company in Capital Structure proportion. This study aims to determine the influence of Time interest earned and Profitability towards Capital Structure in Banking Sectors (Case Study PT. Bank Mandiri Persero Tbk Period 2009-2012). PT. Bank Mandiri (Persero) Tbk selected because become a bank that have large influence and have biggest asset in period January 2009 – 2012. This study used a sample of PT. Bank Mandiri (Persero) Tbk as a bank that will be examined in side of Capital Structure and Variables that influence it. Variables that used are Times Interest Earned and Profitability as Independent Variables then Capital Structure used as Dependent Variable in this research. This study use Multiple Regression Analysis to see and interpret the result, whether there are contributions of each Variable individually and simultaneously to Capital Structure. The result of this research is accepted the Ha Hypothesis, which means that all Independent Variable individually and Simultaneously give influence to Capital Structure of PT. Bank Mandiri (Persero) Tbk Period 2009 – 2012.