Determine Effect of Business Risk, Liquidity and Company Size on Capital Structure of Islamic Commercial Banks

This study aims to determine the effect of business risk, liquidity and company size on the capital structure of islamic commercial banks listed in the financial services authority with profitability ROE as an intervening variable. The research period used was 2013 2018. This research was a quantitative research which associative causality. The method used to collect samples is purposive sampling method. Based on the predetermined sampling criteria, 11 Islamic commercial banks were registered with the Financial Services Authority for the 2013 2018 period. This study uses multiple linear regression analysis techniques. Based on the results of data analysis, it is concluded that Business Risk has a significant effect on Capital Structure. Liquidity has a significant effect on Capital Structure. Company size has a significant effect on Capital Structure. The results of the F test indicate that Business Risk, Liquidity, Company Size and Profitability ROE affect the Capital Structure. The result of path analysis shows that Profitability ROE does not mediate the effect of Business Risk and Liquidity on Capital Structure, but Profitability ROE mediates the effect of Company Size on Capital Structure. Arif Budianto | Mohammad Burhan | Nanik Sisharini "Determine Effect of Business Risk, Liquidity and Company Size on Capital Structure of Islamic Commercial Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38629.pdf Paper Url: https://www.ijtsrd.com/economics/commerce/38629/determine-effect-of-business-risk-liquidity-and-company-size-on-capital-structure-of-islamic-commercial-banks/arif-budianto