Investigate Capital Structure Determinants of Listed Companies in The Market for Alternative Investment

Abstract

The purpose of this research aimed to (1) study capital structure and (2) investigate capital structure determinants of listed companies in the Market for Alternative Investment. The samples used in this study included 58 companies, 174 samples, listed on the Market for Alternative Investment during 2013 - 2015. Data were gathered from the companies’ financial statements and were analyzed with mean, standard deviation, and Multiple Linear Regression at the statistically significant level of 0.05. The research found that companies listed on the Market for Alternative Investment, had the mean for book leverage ratio and market leverage ratio of 8.19% and 6.71%. The findings also revealed that determinants for book leverage ratio were business size, fixed asset, and debt service coverage while market leverage ratio determinants were business size and fixed asset at the statistically significant level of 0.05.