The Effect of Capital Structure and Company Size on Return on Equity

Abstract

The aim of this research is to determine how capital structure and company size affect return on equity. In this study, total assets determines the firm size and the debt to equity ratio determines the capital structure, with return on equity serving as the dependent variable. Quantitative research techniques are used in this methodology. Using the IBM SPSS Statistic Version 26 program, the data analysis The methods used include traditional assumption testing (autocorrelation, heteroscedasticity, multicolonierity, and normality tests), multiple linear regression analysis, determination coefficient testing, and hypothesis testing (t and f tests). The results of the study indicate that return on equity and firm are highly impacted by the debt to equity ratio, at least in part