CAPITAL STRUCTURE ANALYSIS OF MULTINATIONAL AND DOMESTIC MANUFACTURING COMPANIES IN INDONESIA

Abstract

The objective of research to analyze the capital structure of multinational and domestic manufacturing companies in Indonesia. Sample in this study amounted to 30 multinational companies and 32 domestic companies. The stastically analytical technique used in this research was multiple linear regression analysis and Mann Whitney different test. The result of this research showed that the profitability had a significant negative effect to multinational capital structure also the size, asset tangibility, and growth had a significant positive effect to multinational capital structure. The profitability had a significant negative effect on domestic capital structure and the size had a significant positive effect on domestic capital structure. From the Mann Whitney test results, there were differences in capital structure in multinational and domestic manufacturing companies.

Keywords: Capital Structure, Age, Profitability, Size, Corporate Tax Rate, Asset Tangibility,  Growth