DETERMINAN KEPUTUSAN PENDANAAN PADA PERUSAHAAN PUBLIK DI INDONESIA (Pengujian Pecking Order Theory dan Trade Off Theory)

Abstract

Policy regarding capital structure involves a tradeoff between risk rate of return which the increase in debt can cause
an increased risk of the company, but on the other hand also increased the level of return expected by shareholders.
Less than optimal debt management can even lead to bankruptcy of the company. Previous studies conducted in
the Indonesian capital market find different results related to the effect of several variables that affect corporate
financing decisions. The results of empirical research to prove the existence of the application of the pecking order
theory (POT) and trade off theory (TOT) to firms in Indonesia. This study was conducted to examine again whether
variable dividend policy (proxied by the dividend payout ratio), profitability (proxied by return on assets), asset
structure (proxied by the composition of fixed assets), and the variability of the rate of profit (proxied by variablity
of EBIT) significantly against the funding decision (diprosikan to debt ratio) at public companies in Indonesia 2012-
2014. From the results of multiple linear regression analysis of the data 36 samples studied company, the conclusion
that the dividend policy and the structure of assets and a significant positive effect on financing decisions of public
companies in Indonesia 2012-2014. Profitability and variability of EBIT to the funding decisions in this study found
to be negative but not significant.

Keywords : debt ratio, pecking order theory, trade off theory