What Drives Capital Structure? Evidence from Indonesian Infrastructure Companies


International Research Journal of Economics and Management Studies
© 2026 by IRJEMS
Volume 5  Issue 3
Year of Publication : 2026
Authors : Richo Wivilano, Stella
irjems doi : 10.56472/25835238/IRJEMS-V5I3P105

Citation:

Richo Wivilano, Stella. "What Drives Capital Structure? Evidence from Indonesian Infrastructure Companies" International Research Journal of Economics and Management Studies, Vol. 5, No. 3, pp. 28-32, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I3P105

Abstract:

This research examines the determinants of capital structure in infrastructure companies listed in Indonesia during the 2017-2023 period. The study employs purposive sampling to select 16 companies as the research sample and uses multiple linear regression for data analysis. The findings reveal that Firm Size, Profitability, Business Risk, and Current Ratio significantly affect the capital structure of infrastructure sector companies, while asset structure has no significant effect on capital structure.

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Keywords:

Asset Structure, Business Risk, Capital Structure, Current Ratio, Firm Size, Profitability.