Effect of Capital Structure, Asset Growth, Liquidity and Company Size on Business Risk

Abstract

This study examines the effect of capital structure (DER), asset growth (Growth), liquidity (LDR) and firm size on business risk. This study uses quantitative methods with a research sample of 26Banking companies listed on the Indonesia Stock Exchange during the period of 2014 to 2020. The results of this study indicate that the capital structure (DER) has no effect on business risk, meaning that the higher the capital structure, the higher the capital structure will not affect business risk. Asset growth (Growth) has no effect on business risk, meaning that when the company experiences asset growth, it will not affect the company's business risk. Liquidity (LDR) has no effect on business risk, meaning that an increase or decrease in liquidity will not affect business risk. Company size(firm size) can affect the company's business risk, meaning that the larger the size of the company, the greater the business risk.