THE EFFECT OF PROFITABILITY, ASSET STRUCTURE, AND INTEREST RATES ON CAPITAL STRUCTURE IN ENERGY-SECTOR COMPANIES LISTED ON THE IDX FOR THE 2021–2025 PERIOD

Abstract

This study aims to examine the effects of profitability, asset structure, and interest rates on capital structure. This study employs a quantitative research method. The population consists of energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. The sampling technique used is purposive sampling, resulting in a sample of 128. The data analysis method used was multiple linear regression analysis using SPSS. The results of the study indicate that profitability, asset structure, and interest rates have a significant negative effect on capital structure. These conditions indicate that energy sector companies tend to reduce their reliance on debt and prioritize the use of internal funding sources when they have high profitability, optimal management of fixed assets, and rising interest rates.