Factors Affecting the Capital Structure in Textile and Garment Listed in Indonesia Stock Exchange
The purpose of this study was to determine and analyze the influence simultaneously and partially on these factors. The data used is secondary data. The study population was textile and garment companies listed in Indonesia Stock Exchange in 2004 2008. Sampling was done by purposive sampling method and generated eight qualified company. The data analysis used is multiple linear regressions test. The results showed: (1) size of the company, the characteristics type of industry, sales growth, asset structure, operating leverage, NonDebt Tax Shield and profitability simultaneously affect the capital structure, but other factors greater influence, among others economic conditions, political, social, state security unfavourable. In the company it is a management attitude, the attitude of lenders, market conditions, the company's internal conditions, and financial flexibility. (2) The size of the company, industry characteristics, sales growth, asset structure and profitability is partially effecting on the capital structure, while the operating leverage and Nondebt Tax Shield has no effect on the capital structure. Leverage operation has no effect because the sales from year to year are relatively the same, which is sometimes up and sometimes down. This means that funding by using the fixed costs do not affect the capital structure decisions made by management. While Non Debt Tax Shield has no effect because the textile and garment companies have total assets remained low so it does not obtain a tax advantage in the form of depreciation expense depreciation can be deducted in calculating the amount of tax payable. This indicates that the value of depreciation and amortization, the company is not meaningful enough to add cash flow of the company, so it does not count towards the reduction of corporate debt portion.