Low capital structures in food companies impact profitability and growth significantly.
The study analyzed factors influencing the capital structure of food and beverage companies in Indonesia from 2017 to 2019. They found that factors like firm size and liquidity significantly affect the capital structure, while profitability, tangibility, sales growth, asset growth, business risk, and firm activity do not have a significant impact. The research used multiple regression analysis on 14 selected companies to reach these conclusions.