Andrew Sihar Ferlendus Siahaan
Andrew Sihar Ferlendus Siahaan. Pengaruh struktur modal terhadap profitabilitas perusahaan industri. Alas kaki tang tercatat di Bursa Efek Jakarta (dibimbing oleh Dr.Isfenti sadalia, SE, ME, Drs. Amlys S.Silalahi,Msi, dan Dra.Marhaini,MS) The usage of debt is much greater in capital structure, so ROE(Return on Equity) of a company will progresively increase according to free cash flow theory. This argument is higly contradictive with Pecking Order Theory which states that a company which has an investment rate of return (profitability) will have small debt in number. High rate of return can be used as a capital in retained earning. Base on this thing so the researcher made a research to find empirical evidance of influence of capital structure to profitability. Net Income approach assumes that investor assess the profit of company with constant cost of equity and the company can improve the mount of its debt with the level cost of constant debt The more debt wich is used will effect the cost of mean capital deliberated get smaller. If the cost of mean capital deliberated can be minimalized so the current deviden can maximized and it can maximize the price of share in stock exchange. This research used secondary data processed and provided by company through out the publication in JSX by using quantitive data wich consists of statement of all company in footgear industry which is noted in JSX of year 2001 until 2002. This research used SPSS. The result of this research indicates that capital structure has a positive effect and significant to profitability because the capital structure that company used for operasional determines the profit that is expected by the company and this result also indicates that debt which is represented by LDAR has expected dominant among capital structure variable. So that this research proves that debt is able to increase profitability.