The Influence of Business Risk, Sales Growth and Ownership Structure on Capital Structure

Abstract

Companies are encouraged to implement strategies in order to maximize performance and increase potential with increasingly tight competition in the business world. This research aims to find out how ownership structure, marketing developments and company risks influence the form of capital. Quantitative data was used in the research, secondary data sources were used to obtain data, and purposive sampling combined with descriptive and verification techniques was the sampling strategy.

Therefore, a sample of twelve companies was obtained during the 2019-2021 period. Multiple linear regression is the data analysis method used, and SPSS version 26 is used. Based on research findings, the form of capital is not influenced by the form of ownership, but is equally influenced by business risk and sales growth. It also shows how ownership structure, sales growth, and business risk affect inventory shape.