Title:
Capital Structure, Business Risk and Corporate Performance: The Case of Consumer Goods Companies on the Indonesia Stock Exchange

Authors:
Sutrisno Sutrisno, Indonesia

Abstract:

One of the company's goals is the company's survival, where to maintain survival, the company must be able to generate profits. The purpose of this study is to examine the factors that influence profitability. Factors that are suspected of influencing profitability are capital structure, business risk, asset structure, firm size and sales growth. Profitability is measured by return on assets (ROA), capital structure is measured by debt to equity ratio (DER), business risk is measured by degree of operating leverage (DOL), firm size is measured by total assets, and company growth is measured by sales growth. The population in this study were consumer goods sector companies listed on the Indonesia Stock Exchange, with a sample of 33 companies with an observation period of 3 years. Hypothesis testing using multiple regression. The results showed that capital structure, firm size and sales growth had a significant negative effect on profitability. Asset structure had a significant positive effect and business risk had an effect on profitability.

DOI: https://doi.org/10.51505/IJEBMR.2025.9419