Analisis Pengaruh Tangibility of Assets, Non Debt Tax Shield, Profitability, Size, Growth, Uniqueness dan Income Variability Terhadap Leverage

Alves, Andy (2010) Analisis Pengaruh Tangibility of Assets, Non Debt Tax Shield, Profitability, Size, Growth, Uniqueness dan Income Variability Terhadap Leverage. Undergraduate thesis, Universitas Internasional Batam.

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Abstract

This paper analysis the explanatory power of some of the theories that have been proposed in the literature to explain variations in capital structures across firms. In particular, this study investigates Indonesia firms based on BEI data set from 2004 to 2009 comprising about 35 companies. This analysis’s dependent variable is leverage, while the independent variable is tangibility of assets, non-debt tax shield, profitability, size, growth, uniqueness and income variability. This study statistics method is using purposive sampling method and the analysis method is multiple regression. Tangible assets measured as comparing total fixed assets to total assets which is not significant to leverage. Non-debt tax shield has no correlation with debt. Profitability is correlated with leverage. This result may also indicate that firms in general always prefer internal funds rather than external funds, irrespective of the characteristic of an asset that shall be financed. Size is not significant with leverage. Growth is the increase of total asset from previous year to following year. Growth is correlated to leverage. Uniqueness can be measured as comparing selling and administrative expense to total assets. Income variability also known as business risks, where income variability is significantly correlated to leverage. Keywords: Tangibility of assets, Non-debt Tax Shields, Profitability, Size, Growth, Uniqueness, Income Variability, Leverage

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