Title:
THE EFFECT OF ASSET STRUCTURE, GROWTH OPPORTUNITY, AND LIQUIDITY ON CAPITAL STRUCTURE WITH FIRM SIZE AS A MODERATING VARIABLE IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Authors:
Jihan Fathia, Muhammad Adam and A Sakir, Indonesia

Abstract:
This study covers manufacturing companies on the Indonesia Stock Exchange (IDX), focusing on the 2020–2024 period. The primary objective is to analyze the capital structure model, which is influenced by asset structure, growth opportunities, and liquidity, with firm size as a moderating variable. There are 695 observations conducted over five years from a carefully selected sample of 139 companies. This study uses the Chow and Hausman tests to guide panel data regression with a Fixed Effects Model (FEM) through EViews 12. Several methods used to evaluate the assumptions include panel data regression, partial tests, simultaneous tests, and Moderated Regression Analysis (MRA). The findings demonstrate that although asset structure and growth opportunities are insignificant, liquidity significantly influences capital structure. The moderation analysis also shows that firm size does not affect asset structure and growth opportunities, but moderates the impact of liquidity on capital structure. These results suggest that capital structure strategies in manufacturing companies are primarily shaped by liquidity conditions, with business size increasing funding flexibility.