The background of this research is that the banking sector has a fluctuating profit.
Therefore, the researcher wants to examine the factors that cause the profit to
fluctuate. In this study, researchers chose capital structure as a factor to be
studied. The capital structure describes the company's permanent financing
consisting of long-term debt and own capital. Factors that influence the capital
structure in this study are sales growth, profitability, and company size.
This study was conducted to reveal the partial, simultaneous, and dominant
influence of sales growth, profitability, and company size on the capital structure
of food and beverage companies listed on the Indonesia Stock Exchange in 2016-
2019.
The statistical test of the results of the regression variable X1 Sales growth has a
positive effect on the variable capital structure Y, while the variables X2
Profitability and X3 Company size have a negative effect on the variable capital
structure Y. This is shown in the results of multiple linear regression analysis,
namely Y = 2,906 + 0.019 X1 - 5,307X2 - 0,059X3 + e. Partially the variable X1
Sales growth tcount 0.0323 has no partial effect on the variable Capital structure
Y, X2 Profitability tcount -3.942 has a partial effect on the variable Capital
structure Y, while X3 Firm size tcount -1, 0323 has no partial effect on the
variable Capital structure Y Simultaneously X1 Sales growth, X2 Profitability, X3
Firm size has a significant effect on the capital structure variable Y because
Fcount 7,394> Ftable 2,90. The dominant test of this research is the variable X2
Profitability of -3.942, which is greater than the value of X1 Sales growth of
0.323 and X3 Company size of -1.306. The coefficient of determination test (R2)
obtained the result of 0.409. that means that the influence of the variable Sales
growth, Profitability, and company size has a contribution of 40.90% to the
variable Y capital structure. According to the standard interpretation, the effect is
quite significant. The remaining 59.10% is influenced by other factors not
discussed in the study.