Analisis Pengaruh Struktur Modal Terhadap Return On Equtiy Perusahaan Pembiayaan (Studi Kasus Laporan Keuangan PT ABC 2007-2011)
Debt is oftenly used by many companies to raise its capital. This would make debt as one factor that effect company�s profitability. This study uses the ratio of company�s debts, the cost of capital, and macroeconomic factors to help understand the effect of debt to profitability in multifinance...
| Main Authors: | , |
|---|---|
| Format: | Thesis |
| Published: |
[Yogyakarta] : Universitas Gadjah Mada
2013
|
| Subjects: |
| Summary: | Debt is oftenly used by many companies to raise its capital. This would make
debt as one factor that effect company�s profitability. This study uses the ratio of
company�s debts, the cost of capital, and macroeconomic factors to help
understand the effect of debt to profitability in multifinance companies in
Indonesia. Company�s debts ratio are illustrated by Debt to Asset Ratio and Debt
to Equity Ratio. Both of these ratios show the efficiency and effectiveness of the
company in utilizing its debts to increase assets and its financial resources to
generate profit. Cost of capital is described by calculating the perspective cost of
weighted firm�s capital component. Minimization of capital costs would
maximize the profits of the company. While macroeconomics factor is proxy by
BI rate as a reference of banks� interest rates. The results showed no significant
effect of ratios of debt to the company's profitability, while result of cost of capital
and interest rate support the research hypotheses that both factors negatively affect
the company's profitability. |
|---|