Abstract: This research respond to the issue of companies that are experiencing financial problems in the structure of capital and the factors that affected it. On test F,Sales Growth, Size, ROE and Liquidity together influential significantly to DER. With t-test, independent variable in the partial effect significantly to DER. Liquidity and sales growth negatively effect to DER. Size and profitability positively effect to DER. This research supports Pecking Order and Trade OffTheory. The findings of this research, the company has a very high effect size is huge in terms of obtaining capital from external. So with loan capital can support in terms of operations and lead to increased productivity so that profitability increased. From the size big company pointed out that manufacturing company in the position of mature. But the results of this research indicate high size but low sales growth so company does not had high capital outlay and profits obtained not many being held for development of the company. The size of company is large but the company is experiencing liquidity problems because too rely on short-term funding due to the lack of long-term funds.

Keywords: Capital Structure, Liquidity, Profitability, Size of Company, Sales Growth.

PDF | DOI: 10.17148/IARJSET.2018.571

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