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Optimal Capital Structure Analysis For Banking Companies Listed In Indonesia Stock Exchange

Priyanka Zahra Diandra, Deddy Priatmodjo Koesrindartoto


Abstract. The topic of optimal capital structure has been the subject of many studies. This research is aim to find out what is the composite of the capital structure in banking companies listed in Indonesia Stock Exchange and identify the optimal capital structure of each companies and also examines whether the actual capital structure implement by the companies has reach the optimal point. The scope for this research is only focuses on the banking companies that listed in Indonesia Stock Exchange (IDX) with the range of time from 2013 to 2017. The main methodology will be used to calculate the optimal capital structure is by using cost of capital approach that will consider the Weight Average Cost of Capital (WACC). The findings will be providing the current capital structure of baking companies and also the optimal capital structure for each banking companies.

Keywords: Optimal Capital Structure; Banking Company; Cost of Capital; Indonesia.


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