The Effect of Profitability, Liquidity, Company Size, and Sales Growth on Capital Structure with Board Size as a Moderation Variable in Technology Sector Companies Listed on the Indonesia Stock Exchange for the 2022-2024 Period

Abstract

This study aimed to analyze the determinants of capital structure in technology sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period by examining the effects of profitability, liquidity, company size, and sales growth. In addition, board size was incorporated as a moderating variable. This study employed a quantitative approach using secondary data obtained from financial statements and official annual reports. The sample was selected using a purposive sampling method, while data analysis was conducted using panel data regression and Moderated Regression Analysis (MRA). The empirical findings indicated that liquidity had a negative and significant effect on capital structure. In contrast, profitability, company size, and sales growth showed negative relationships with capital structure, but their effects were not statistically significant. Furthermore, board size did not significantly moderate the relationships between the independent variables and capital structure. These findings provide strategic considerations for management in making financing decisions and contribute to the empirical literature on capital structure dynamics in the Indonesian technology sector.