Determinants of Corporate Capital Structure: An Empirical Study of the Effects of Profitability, Liquidity, and Firm Size on Manufacturing Issuers in the Primary Consumer Goods Sector Listed on the Indonesia Stock Exchange

Abstract

This study investigates the influence of profitability (ROE), liquidity (CR), and firm size on the capital structure of manufacturing companies in the Primary Consumer Goods Sector listed on the Indonesia Stock Exchange (IDX). Employing a quantitative research approach, the study uses purposive sampling to select 42 companies based on established criteria, covering financial data for the period 2024-2025. The analytical procedures include descriptive statistics, classical assumption tests (normality, multicollinearity, heteroscedasticity, and autocorrelation), and hypothesis testing through multiple linear regression, the coefficient of determination (R2), the F-test, and the t-test. The findings indicate that ROE has no statistically significant effect on capital structure (sig. 0.683 > 0.05; t = 0.412 < t-table 1.686). CR has a statistically significant negative effect on capital structure (sig. 0.038 < 0.05; t = -1.798 > t-table -1.686). Firm size shows no statistically significant effect on capital structure (sig. 0.693 > 0.05; t = -0.398 < t-table -1.686). Simultaneously, the three independent variables do not exert a significant combined effect on capital structure (F-calculated 1.623 < F-table 2.845; sig. 0.198 > 0.05). These results are consistent with the Pecking Order Theory and have important implications for financial decision-making within Indonesian manufacturing firms.