The Effect of Dividend Policy, Sales Growth, and Liquidity of the Company’s Capital Structure

ABSTRACT : The funding decision is very important for the company because it involves how much use ofdebt compared to equity in investment. Companies must determine whether to use internal in or external fundsas to obtain an optimal capital structure that will minimize the cost of capital borne. Purpose of study is todetermine significance of effect of dividend policy, sales growth, and liquidity, on capital structure. Research isconducted at companies listed on Indonesia Stock Exchange with 88 companies as samples using simple randomsampling. Data collection is done by observing and recording from the archives of several sources. The analysistechnique used is multiple linear regression. Based on the results of the analysis found that dividend policypartially has a significant positive effect on capital structure, sales growth partially has a significant positiveeffect on capital structure, and liquidity has a partially significant negative effect on capital structure.

KEYWORDS: capital structure, dividend policy, sales growth, liquidity.