The policy of capital funding or capital structure is one of the highly
important policies for a company (Elim and Yusfarita, 2010). The capital structure
decision centers on the allocation between debt and equity in financing the
company (Rizov, 2011). The decision to select the company funding often
presents dilemma for the financial managers. The dilemma is that the managers
should be able to gather the fund, both the internal one and the external one,
efficiently in a sense that the funding decision should be able to minimize the
capital cost. The capital cost that has been resulted from the funding decision is a
consequence that arises from the decision that the managers take. The inaccurate
funding decision will cause the occurrence of fixed cost in the form of high capital
cost, which then might result in the low company profitability (Nurrohim, 2008).
This research was conducted for the purpose of empirically test, the
influence of the growth opportunity toward the optimal capital structure, to
empirically test the influence of the profitability toward the optimal capital
structure, to empirically test the influence of the firm size toward the optimal
capital structure dan to empirically test the influence of tangible asset toward the
optimal capital structure. This research was conducted on the company listed in
LQ 45 year 2012 – 2017.
The results of this study show that growth opportunities does not effect the
optimal capital structure, ROA and PM has a negative effect on optimal capital
structure, TAR has a negative effect on optimal capital structure and tangible
assets has positive effect on optimal capital structure.