The Impact of Capital Structure on Profitability in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2017-2019
Abstract
This a study a seeks to assess and aprovide empiricalaevidence of the a Effect of Capital Structure on Profitability in Indonesia Stock Exchange-Listed Manufacturing Companies from 2017 to 2019. Explanatory research employing a quantitative methodology was utilized for this study. Purposive sampling is a non-random sample selection technique that employs specific criteria to collect data or information. Some samples did not satisfy the criteria, so nine pharmaceutical manufacturing companies were selected as research samples. The results indicated that the capital structure (DAR, DER) partially did not affect profitability (ROA), but the capital structure (DER) did affect profitability (ROE). In the meantime, capital structure (DAR, DER) has no impact on profitability (ROA) or profitability (ROE).
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