Profitable Companies Thrive with Flexible Asset Structures, Boosting Economic Growth
The article examines how factors like profitability, growth opportunities, asset structure, and business risk influence the capital structure of manufacturing companies in Indonesia from 2012 to 2016. The researchers found that profitability, growth opportunities, and asset structure have a significant impact on capital structure, while business risk does not. This suggests that companies' financial decisions are influenced by their ability to generate profits, their growth potential, and the composition of their assets.