Capital Structure Determinants of State and Family Firms: A Comparative Analysis
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This study aimed to analyze how the capital structure determinants i.e. ownership, profitability, firm size and current ratio of state and family firms in Indonesia Stock Exchange effect capital structure of each type of firm respectively during 2016-2020 research period and also examined whether there was a difference in capital structure of the two types of firms. The population consists of 107 firms i.e. 22 state-owned and 85 family-owned firms. Using a purposive sampling technique, the total samples of 66 firms were obtained (11 state-owned and 55 family-owned firms). Multiple regression and Independent sample t-test were employed to test the hypotheses. The results showed that ownership of state firms had negative effect on their capital structure. Contrary, ownership of family firms positively influenced on their capital structure. Profitability and current ratio of the two types of firms impacted negatively on the capital structure of each type of firm respectively but firm size did not. There was a difference in capital structure of the two types of firms.
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