Factors influencing the capital structure of sharia construction and building companies

• Said Musnadi, Ghazali Syamni Faculty of Economics and Business, University of Syiah Kuala, Aceh, Indonesia
• Jumadil Saputra3, umt.edu.my Irfan4, Mitra Prasetyo5 3School of Social and Economic Development, Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia. 4Sekolah Tinggi Ilmu Ekonomi, Aceh, Indonesia. 5Faculty of Business and Economics, University of Malikussaleh, Aceh, Indonesia.

Palabras clave: Tangibility, tax shields, firm, profitability.

Resumen

This study aims to amine the effect of tangibility, non-debt tax
shields, firm size, profitability, and receivables to the capital structure
by using panel regression based on the Common Effect model, fixed
effect model and random effect model. The results of this study
showed that there was a negative influence of tangibility and firm size
on the capital structure. Research implication concludes that investors
should be more careful choosing a company, to invest their capital by 

looking at reliability, non-debt tax shields, firm size, profitability, and
receivables to improve the expected capital structure.