ANALYSIS OF THE EFFECT OF CAPITAL STRUCTURE VARIABLES ON FINANCIAL PERFORMANCE IN FOOD AND BEVERAGE MANUFACTURING COMPANIES REGISTERED IN INDONESIA STOCK EXCHANGE FOR 2015-2019

Abstract

This research aims to determine whether there is an effect of capital structure variables as measured by Debt to Equity Ratio (DER), Debt to Assets Ratio (DAR), and Equity to Assets Ratio (EAR) on financial performance as measured by Return on Equity (ROE) in food and beverage sector manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. This research uses quantitative data types with a population of food and beverage manufacturing companies listed on the Indonesia Stock Exchange for the period 2015-2019. The research samples were 14 companies. The sampling technique was purposive sampling. The research used multiple regression analysis method. The data analysis used is descriptive statistical analysis, classical assumption test analysis in the form of normality test, multicollinearity test, heteroscedasticity test and autocorrelation test, and hypothesis test in the form of t-statistical test with a significance level of 5% and a test of determination (R²). The results and conclusions that can be drawn from this research are the capital structure variable measured by the Debt to Equity Ratio (DER) affects financial performance as measured by Return on Equity (ROE), the capital structure variable measured by the Debt to Assets Ratio (DAR) affects financial performance as measured by Return on Equity (ROE), the capital structure variable as measured by Equity to Assets Ratio (EAR) affects financial performance as measured by Return on Equity (ROE).