This research aims to find the impact of corporate diversification to capital
structure in Indonesian manufacturing firms listed in Indonesian Stock Exchange on
2014 up to 2018. The sample used in this research is 40 manufacturing companieslisted
in Indonesian Stock Exchange in 5 years, which is 2014-2018. In this case, capital
structure is measured using leverage by using debt to equity ratio. Diversification is
measured using Herfindahl-Hirschman Index (HHI). There are two control variables in
this research: profitability, measured using return on assets; and dividend policy,
measured using dividend payout ratio. The result is that diversification gives negative
and significant impact to capital structure. The control variable, profitability and
dividend policy both gives negative and significant impact to capital structure.