ANALYSIS OF FIRM-LEVEL CHARACTERISTICS ON CAPITAL STRUCTURE DURING THE COVID-19 PANDEMIC IN NON-FINANCIAL COMPANIES LISTED ON THE IDX

Abstract

This study examines firm-level characteristics in the capital structure during the covid-19 pandemic, utilizing a sample comprising 364 Indonesian companies over a span of 4 years (with a total of 1,456 observations). The research data underwent processing using the fixed effect method through the utilization of Eviews version 12 software. We discovered three new findings. Firstly, firm-level characteristics significantly influence on the capital structure during the covid-19 pandemic, especially of profitability, non-debt tax shields, and earnings volatility. Secondly, this research are consistent with both the trade-off theory and the pecking order theory