The Effect of capital structure and its influencing factors on stock return in Jakarta Stock Exchange

TRISHANTI, Arie, Eduardus Tandelilin, Prof.Dr.,MBA

2005 | Tesis | Magister Manajemen

The purpose of this research is to examine whether capital structure and its influencing factors have information content. Hypothesis are derived from conceptual model positing the effect of capital structure on stock return and the effect of capital structure influencing factors directly or indirectly by using capital structure as intervening variable. The study used yearly return of 18 stocks of ILQ 45 group in the Jakarta Stock Exchange. And the study used yearly financial report of 18 companies that are listed on ILQ 45 group, to examine the capital structure and its influencing factors. The capital structure is proxy by 2 ratios that are Debt ratio and Debt to Equity Ratio. And the influencing factors of capital structure are proxy by 3 factors, which are ROA is proxy of business risk, ROE is proxy of profitability, and Ln Sales is proxy of firm size. The hypotheses test used path analysis and drop the variable that indicate insignificant correlation. The result indicates that there are 1 proxy of capital structure is affected on stock return. And there are 2 proxy of influencing factors of capital structure is affected on stock return indirectly. The 3 proxy of influencing factors of capital structure do not have any significant direct correlation on stock return

Kata Kunci : Return Saham,Struktur Modal