Exploring Ownership Structure, Profitability, and Liquidity Dynamics for Competitive Growth: Shaping Indonesia’s Capital Structure

The multiple elements have the potential to influence a company’s capital structure, paving the way for competitive growth. The current study aims to analyze the influence of ownership structure, Profitability (PROF), and Liquidity (LIQ) on capital structure. In this study, ownership structure is proxied by managerial ownership (MO) and institutional ownership (IO). Manufacturing companies registered on the Indonesia Stock Exchange between 2018 and 2022 contribute to the population. The sample is derived from 78 companies with a total of 226 samples. This study uses Eviews 16 software and a quantitative approach with multiple regression analysis. This study’s findings show that PROF and LIQ significantly affect capital structure in a negative way. On the other hand, there is no evidence that MO and IO have an effect on capital structure. This research can contribute to the development of literature, particularly in the context of determining the capital structure of companies and serve as a reference for stakeholders in decision-making.