Effects of Firm Size, Profitability, Liquidity, and Sales Growth on Capital Structure

Abstract

This study intends to analyze the effect of firm size and profitability, liquidity, sales growth regarding capital structure in F&B firms listed on the IDX during 2021-2025. Research employed a using quantitative approach an associative method and utilized secondary sources of data derived the obtained from annual financial reports of the company. The study employed purposive sampling technique is employed to select the sample, producing 270 observationsData analysis was conducted using multiple linear regression with the assistance of SPSS Version 25. Findings showed that profitability as well as liquidity had negative effect and a significant impact regarding capital structure, indicating that companies with a high level of profitability and Liquidity tends to prioritize internal funding financing over debt. Meanwhile, firm size and sales growth was not significant affect capital structure, thus these two variables are not yet primary factors in determining corporate financing policies. Simultaneously, firm size, profitability, liquidity, sales growth significantly influenced capital structure.