FACTORS INFLUENCING THE CAPITAL STRUCTURE IN FOOD AND BEVERAGE INDUSTRY AT THE IDX FOR PERIOD 2008 - 2011

ISTILFA, HANIFA (2013) FACTORS INFLUENCING THE CAPITAL STRUCTURE IN FOOD AND BEVERAGE INDUSTRY AT THE IDX FOR PERIOD 2008 - 2011. Diploma thesis, Universitas Andalas.

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Abstract

In this modern era the competition business in the world increasing tight, therefore many company increase the value to make a good peformance for their company, especially food and beverage companies. Many steps can be achieved in order to increase the value of the company by way of increasing prosperity ownership or shareholders. The investors and the role of management is very important in determining how much the company get the profit in the future. This has resulted in every food and beverage companies must be ready with the situation that happened, so it can make perform of management functions could be competitive than other. Decisions taken by the manager is very important and highly influential, therefore in a manager's should be considered and carefully to establish cost of funds, because any decision on funding sources have different financial consequences. In taking decisions on funding covers a wide range of consideration whether the company would use internal resources and external resources derived from debt or by the emission of new shares. The investors of a corporation are the responsibility of the manager. The most important decision of financial managers in continuing of the operation of an enterprise is the funding decision on capital structure, which is financial decision with 2 regard to the composition of the debt, preferred stock and common stock that should be used by the company (Yuke and Hadri 2005). Manager should be prosecuted for being able to muster funds sourced from internal company or external company efficiently, in the sense of the funding decision is able to minimize capital costs to be borne by the company. When the manager using debt, capital costs incurred is interest expense charged by the creditor. The wrong decision take from managers will be impact to the fixed costs in the form of high capital costs, so it can be impact to the low profitability of the company.

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