THE INFLUENCE OF ASSET STRUCTURE, EARNING VOLATILITY AND FINANCIAL FLEXIBILITY ON CAPITAL STRUCTURE IN MANUFACTURING SECTOR COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE (IDX)

Abstract

This study aims to examine the influence of asset structure, earning volatility, and financial flexibility on capital structure in manufacturing companies listed on the Indonesia Stock Exchange (IDX) from the period 2019–2023. This research employs a quantitative approach with purposive sampling as the sampling technique, resulting in a sample of 64 manufacturing companies. The data analysis is conducted using the random effect model estimation approach. The findings reveal that asset structure does not have a significant effect on capital structure, while earning volatility has a significant positive effect, and financial flexibility has a significant negative effect on capital structure.