| dc.description.abstract |
This study aims to examine the existence of speed adjustments to the capital
structure of banking companies towards optimal capital structure in accordance
with the dynamic trade off theory and trade off theory as well as the determinants
that influence the speed of adjustment of the company's optimal capital structure
in the 2018-2022 period. This research involves secondary data in the form of
financial reports from banking companies listed on the Indonesia Stock Exchange
(IDX) which are published on the IDX website, www.idx.co.id. The samples used
were 39 banks listed on the Indonesia Stock Exchange. The determinants that are
estimated using several variables that affect the speed of capital structure
adjustment are profitability, firm size, tangibility, growth and business risk. The
data analysis technique used in this study is panel data regression with a
significance level of 5%.
The results obtained show that banking companies on the IDX are making
adjustments towards an optimal capital structure with an adjustment speed of
89%. This shows that the capital structure of banking SOA on the IDX is
relatively faster than manufacturing companies in Indonesia by 64.73%
Wamarna, et al. (2020). The test results show a significant positive effect on
profitability, firm size, and tangibility on SOA's capital structure and there is a
significant negative effect on growth on SOA's capital structure. However, there is
no negative effect of business risk on SOA's capital structure. | en_US |
