The Impact of Capital Structure on Profitability in the Telecommunication Industry Listed on the Indonesian Stock Exchange

DOI

10.2991/aebmr.k.200131.019How to use a DOI?

Keywords

Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR), Long-term Debt Equity Ratio (LTDtER)

Abstract

The purpose of this study is to find the effect of capital structure on profitability in the telecommunication industry company at Indonesian Stock Exchange. Variables that are used to measure the capital structure are Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER) and Long-term Debt Equity Ratio (LTDtER). Meanwhile, the variable used to measure company’s financial performance is profitability ratio such as, Return On Equity (ROE). The population of this study is Telecommunications Company at Indonesian Stock Exchange with study period 2009–2018. The sampling method employed is purposive sampling in total 5 companies with panel data analysis method. The result proves that capital structure’s variable DAR has negative and significant effect on ROE. Capital structure’s variable DER has negative and significant effect on ROE. Meanwhile, capital structure’s variable LTDtER has positive but not significant effect on ROE.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - I Wayan Sima Wiyasa
AU  - Abdul Basyith
PY  - 2020
DA  - 2020/02/07
TI  - The Impact of Capital Structure on Profitability in the Telecommunication Industry Listed on the Indonesian Stock Exchange
BT  - Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)
PB  - Atlantis Press
SP  - 88
EP  - 92
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200131.019
DO  - 10.2991/aebmr.k.200131.019
ID  - Wiyasa2020
ER  -