Analysis of the influence of Business Risk, Profitability, Invesment Decisions and Dividend Policy on Capital Structure in the Manufacturing Sector on the Indonesian Stock Exchange

The purpose of this study is to investigate the effect of business risk, profitability, investment decisions and dividend policy on the capital structure. This study addresses a gap in the existing literature, as previous studies have not provided conclusive results on this topic. The study uses secondary data from Indonesian listed industrial companies from 2019 to 2023, covering 44 companies and 220 data points. The sample size was determined using the purposive sampling method, in which samples are selected based on certain criteria. Analysis was performed using multiple linear regression with Eviews12 for data processing. The results show that business risk (Risk), profitability (ROE) and investment decisions (PER) significantly affect capital structure (DER), while dividend policy (DPR) has no significant effect on capital structure (DER)