dc.description.abstract | This study examines whether firm size, business risk, growth of assets, profitability and ownership structure affect to capital structure. Previous studies show that capital structure affected by assets structure, assets growth, profitability risk, firm size, tax shield, ownership structure, payment system and market condition. Some studies of capital structure show that the results are not consistent
This research uses sample of 97 manufacturing firms listed in Jakarta Stock Exchange selected using purposive sampling method with the number of samples determined by Roscoe rules. The criteria for the purposive sampling method are that manufacturing firms have go public before December 31, 1997, these firms have reported financial statements for 1997 to 2001.
This research tests of six hypothesis use multiple regression. The assumption for the multiple regression is also tested. Result of the assumption test, autocorellathn, multicollinearity, and heteroscedasticity are satisfied. The result of the examination show that nulls hypothesis cannot be rejected by using profitability variabel | en_US |