The Influence of Capital Structure Toward Company Value With Different Growth Opportunities

Abstract

M.Yusuf. Nugroho (2006) "THE INFLUENCE OF CAPITAL STRUCTURE TOWARD COMPANY VALUE WITH DIFFERENT GROWTH OPPORTUNITIES" Yogyakarta: Faculty of Economics, Department of Management, International Program, Universitas Islam Indonesia. Keywords: Capital structure, Company value, Growth Opportunities, Leverage In this research, the writer tries to empirically test the influence of the debt structure toward the company value with different growth opportunities within the manufacturing companies in Indonesia. It is observed that the optimal capital structures are closely related to the growth potential of the firms and some other variables, such as: the size and the industry characteristics. In this context, the writer tries to empirically test: whether the correlation between Tobin's Qand Capital Structure is positive or negative for high-growth firms and low-growth firms. The secondary data in this study is obtained by collecting the suitable data from ICMD (Indonesian Capital Market Directory). The quantitative data analysis method used to test the four hypothesizes inthis research is Multiple regression. The research finding and the analysis result shows insignificant effect ofcapital structure influence toward company value both in high and low growth opportunity conditions.