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2. The Effect of Profitability on Capital Structure
Based on the results of multiple linear regression analysis that has been tested previously demonstrated coefficient X
2
= -0,466, show that Profitability X
2
significant negative effect on the capital structure Y. That is, if Profitability increased by one unit, then the increase the capital structure will increase by -
0,466. Partial results of hypothesis testing showed the profitability variable with a
significance level of 95 α = 0.05. Figures significance P Value on the
profitability of 0.000 0.05. On the basis of this comparison, the profitability variable but significant negative influence on the capital structure, this is in line
with research conducted by Yovin Suryantini 2012 with the title of Factors Influencing Capital Structure of Foods and Beverages at Company Listed on the
Indonesian Stock Exchange shows that profitability has negative and significant effect on the capital structure. This research was also supported by research
Hadinugroho Delisandri 2012 with the title of research Analysis of Internal Factors Affecting the Companys Capital Structure At the Consumer Goods
sector, the profitability of research results have a negative relationship. Yovin Suryantini 2012 reported a negative effect on the profitability
of the capital structure means that the higher profitability of the resulting company, the companys capital structure will be lower, due to the high level of
profitability the company is able to provide internal funding in large quantities. In accordance with the pecking order theory, If internal funds have been able to meet
most of the funding requirements, the company can reduce debt.
87 This means that internal funds are the main option in meeting the
financing sources. The higher profits from the smaller companys desire to use the debt.
3. The Effect of Solvency on Capital Structure
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