The Effect Of Profitability And Tangibility On Capital Structures
S.Sulastri, AP.Putri & H. Tanuatmodjo

Universitas Pendidikan Indonesia

Abstract

The aims of this study to determine the overview of the profitability measured by Return On Equity (ROE), tan-gibility and the capital structure measured by Debt to Equity Ratio (DER), and to know the profitability and tan-gibility of the capital structure. The research methods used are descriptive and verifiedative. The research popu-lation is a sub-sector company of Pharmaceuticals registered in Indonesian Stock Exchange period 2012-2017.Samples taken with purposive sampling techniques. The analytical techniques used are classical assump-tion testing and panel regression analysis, as well as hypothesis testing using the F test and T test. The results revealed that the development of profitability decreased, the development of tangibility increased and the devel-opment of capital structures that experienced increases and decreases that tend to decline.Based on the F test, the profitability and tangibility are pensive to the capital structure, based on the T test, the profitability affects the capital structure and tangibility has no effect on the capital structure.

Keywords: Profitability, Tangibility, Capital Ctructure

Topic: Marketing and Fintech in Terms of Islamic Perspective