THE INFLUENCE OF MODAL STRUCTURE, THE SIZE OF THE COMPANY AND SALES GROWTH ON COMPANIES PROFITABILITY THAT LISTED ON SRI-KEHATI INDEX

The purpose of this paper is investigate the impact of capital structure growth on firm profitability from companies that listed on SRI-KEHATI Indeks in 2011-2015. Independent variable that used to represent firm profitability is Return on Asset (ROA), while the independent variables that used to represent long term debt, short term debt, firm size, and sales growth. The data used in this study is secondary data derived from the financial statements of companies listed in the SRI-KEHATI index period 2011-2015. Data analysis technique in this research use regression analysis of panel data of Fixed Effect Model (FEM). From the test, it can be seen that the variable of long-term debt, short term debt, firm size and sales growth give significant influence to profitability of companies listed in SRI-KEHATI index in 2011-2015 period.

p-1412-3789 www.journalmabis.org e-2477-1783 3 return of varieties of company and also the impact of the decision as the company ability to face competitive environment (Joshua Abor 2005).
Capital structure and company performance theory stated by Modigliani Miller (1958) in Varun Dawar (2014) is the important issue within company financial. Although there are any capital structure theory alternatives which have been developed in the past 50 years, optimal determination from capital structure depend on company condition. Some theories related to capital structure are pecking order theory and trade-off theory. According to Dawar, trade-off theory determines the optimal debt level or balance target level between tax savings and bankruptcy cost. Meanwhile what Myers (1984) stated in Varun Dawar (2014) pecking order theory assumed that company external funding hierarchy happens when there is no availability or lack of internal fund. Associated with the connection between those two theories, there are many researchers that conduct their research based on capital structure theory.
Varun Dawar (2014) study the impact of capital market to company performance in India during 2003 to 2012 period. In this research there are some variables which are dependent variable, independent variable, and control variable. Dependent variables used by Darwin are Return on Equity (ROE), Return on Asset (ROA). The research independent variables are Long term debt, and short term debt. Meanwhile the control variables are firm size, firm age, tangibility, sales growth, liquidity and ratio of advertising, distribution and marketing expense. The research result shows that with data cross-section from companies in India, the connection between company capital structure (short term debt and long term debt) and Profitability (ROA and ROE) is negative significant.
Ibrahim El-Sayed (2009) test the company sample that registered in Egypt and uses three accounting steps based on financial performance. Dependent variables used by researcher are ROA, ROE, and Gross Profit Margin. Independent variables are Short Term Debt (STD), Long Term Debt (LTD), and Total Debt (TTD). And control variable used is frim size. Empirical result shows that capital structure (STD and Total Debt) have negative impact to company performance.
Joshua Abor (2005) conducts a research about connection between capital structure and company profitability listed in Ghana Stock Exchange for 5 periods. Dependent variable used in this research is Return On Equity which obtained from Earning Before Interest and Taxes (EBIT)divided by company equity. Independent variable used are short term debt, long term debt, and total debt. Frim size and sales growth become control variable. The research states that short term debt positive significantly impacting Return On Equity, meanwhile long term debt has negative connection with Return On Equity. Regarding the connection between total debt with profitability, the research shows the positive significant connection between Total Debt to Total Capital Ratio (DA) and ROE.
Based on the research result presented, can be concluded that there is no universal theory in capital market selection, company size and active structure in company, whether majority of the company use long term debt or short term debt, choosing large company to increase profitability. This research will test hypothesis related to capital structure and the size of the companies listed in SRI-KEHATI index. From 9 variables that have been tested in previous research, 4 taken as independent variables in this research which are long term debt, short term debt, frim size, and sales growth and then dependent in profitability is Return to Asset.
Company selection above based on company performance which includes in SRIK-KEHATI index if compared with company that is not listed in SRI-KEHATI index like in the previous research. Calculation method used by two index use the same method for calculating the weighted average of listed stocks. In SRI-KEHATI index listed 25 issuers which considered to apply environmentally friendly principal. But  Indonesia Biodiversity Foundation (KEHATI) since 2009. Sri itself is the abbreviation of "Sustainable and Responsible Investment". This index intended for issuers are not just doing business but also take environment and sustainable development into consideration. Because this day, citizen awareness in preserve the environment is increasing including all investor in selecting issuers. Investor will consider which issuer that have concern for environmental conservation and sustainable development.
The company selection mechanism in order to be listed in SRI-KEHATI index conducted in two stages which are negative selection and financial aspect early screening and in the second stage is by fundamental aspect. SRI-KEHATI index consists from 25 issuers has been selected to be listed in it and meet the criteria determined. The main criteria are absolutely about the awareness of living environment, social, and good company governance, it is explained that issuers must work free from environment negative impact such as pesticides, nuclear, weapons, tobacco, alcohol, pornography, gambling, Genetically Modified Organism (GMO). Another criteria includes Total Asset, Price Earning ratio, and Free Float Ratio. The total asset that represent the size of SRI issuer are issuers that have total asset more than Rp 1 billion based on the annual financial audit assessment. Issuers Price Earning Ration which included must be positive, and stockholding free float ration owned by public must be more than 10%.
Next, in order to choose the 25 best stocks, further rating conducted by considering fundamental aspect by considering 6 main factors which include corporate governance, environment, community involvement, business behavior, human resources, and human rights. Assessment review applied to company secondary data, filling out the questionnaire from the company which already through the selection stage above and supported by other relevant data.
Indonesia Stock Exchange and KEHATI foundation routinely supervising the stock component included in the index calculation. Review and stock exchange that included in SRI-KEHATI index conducted every 6 months which in early May and November.

Research Method 2.1 Population and Characteristics Target
Data used in this research is secondary data, which is data collected by other party (third party) and does not collected directly by researcher. The data comes from company financial assessment listed in SRI-KEHATI index 2011-2015 period. Population target in this research is the company that listed in SRI-KEHATI index 2011-2015 index. Population characteristic in this research are: 1. Company that publishes company financial data completely during 2011-2015 period. 2. Company that permanently listed in SRI-KEHATI index in 2011-2015 period. 3. Not in the process of delisting in 2011-2015 period.

Data Processing Method
This research uses data panel regression model in order to test hypothesis used. Data panel regression analysis is regression technique which combines time series and cross section data by using the support of Eviews 8.0 for windows software in order to study the impact of short term debt, long term debt, company size and sales growth to company profitability (ROA). In data processing, it is processed by using 4 stages which are: Method Estimation, Assumption Method, Model Testing, and Result Interpretation. Regression model in panel data built in this research is: : i company size in t period SALES GROWTH : i company sales growth in t period β 1 , β 2 , β 3 , β 4 , β 5 : Regression coefficient e : Mistake (standard error) = residual errors

Result and Discussion 3.1 Descriptive Statistic
In this research, researcher uses descriptive statistic in explaining the information or characteristics description from research sample which represents the population. Variable with highest average value (mean) is size variable which is 30.8765 and for lowest deviation standard variable is ROA variable which is 0.0923. the higher deviation standard value representing higher range of value of the variable, so does the opposite.

Regression Value (Fixed Effect Model)
Below presented the test result In table 4.2 resulting constant value which has positive value, this thing means that when all variables (SHDB, LNDB, SIZE, dan SALES) is 0 then the regression value will increase as much as the constant value. Short term debt (SHDB) value has regression coefficient value of 0.325. this value shows that there is negative impact between short term debt variable (SHDB) with return of asset (ROA). This coefficient value also has meaning with the increase in one unit of short-term debt variable (SHDB) with the assumption that the other independent variable is till or constant then return on asset (ROA) variable value will decrease as much as 0.325.
Long term debt (LNDB) variable value has regression coefficient value of 0.414. this value shows that there is negative impact between long term debt (LNDB) variable with return on asset (ROA). This coefficient value also has meaning with the increase in one unit of long term debt variable (LNDB) with the assumption that the other independent variable is till or constant then return on asset (ROA) variable value will decrease as much as 0.414.
Company size (SIZE) variable value has regression coefficient value of 0.043. this value shows that there is negative impact between company size (SIZE) variable with return on asset (ROA). This coefficient value also has meaning with the increase in one unit of company size (SIZE) with the assumption that the other independent variable is till or constant then return on asset (ROA) variable value will decrease as much as 0.043.
Company sales growth (SALES) variable value has regression coefficient value of 0.055. this value shows that there is negative impact between company sales growth (SALES) variable with return on asset (ROA). This coefficient value also has meaning with the increase in one unit of company sales growth (SALES) with the assumption that the other independent variable is till or constant then return on asset (ROA) variable value will decrease as much as 0.055.

F Testing Result
F testing use in order to know whether independent variables together have the same significant impact to dependent variable. In order to know that, F testing can be conducted in multiple linear regression model by Fixed Effect Model. F testing result can be seen from Fstatistic probability. The lower F-statistic probability value, the stronger independent variable impact to dependent variable.
From table 4.2 can be seen that F-statistic probability is 0.000000. With that, it can be stated that long term debt, short term debt, company size, and sales growth variable together have significant impact to company profitability (Return on Asset).

T testing Result
T testing tests the impact of each independent variable individually to dependent variable. Partial testing which conducted by t testing to variables examined, known that short term debt has significance level of 0.0000, with negative significance result. That result is suitable with the research hypothesis that short term debt has negative impact to company liquidity whereas the bigger short term debt the smaller current asset owned by company. That  p-1412-3789 www.journalmabis.org e-2477-1783 7 thing happens because company must pay short term debt so that company profitability will decrease. The research result is in accordance with the research conducted by Dawar (2014). Short Term Debt becomes company capital external structure, but if both of them are increasing does not mean that company performance increases. This thing does not refer to agency theory which explains that debt can decrease agency conflict. If company decides to use the capital external, manager must be discipline to managerial behavior to stock holder. The discipline needs incentive in order to increase company observation, but what happen is the opposite in the end the manager will decrease debtor incentive and affecting to company performance.
Partial testing which done by t testing to examined variables, known that long term debt has significance value of 0.000, with negative significant result. The result is in accordance with research hypothesis that the higher long term debt owned by a company will decrease the profitability because company has the risk of the debt that must be paid. The research result also in accordance with the research conducted by Chiang, Chang, and Hui (2002). A manager cannot use excessive leverage number in capital structure because if company uses excessive external capital structure then manager must fund projects using retained earning and leverage as the last option. Manager must work hard in order to achieve optimum capital structure level in order to maximizing company performance and try to maintain it as good as possible.
Partial testing done by t testing to examined variables, known that frim size has significance level of 0.0018, with negative significant result. That result is not in accordance with the research hypothesis. Stierwald (2009) says that the company size has positive impact in profitability if a bigger company will get benefit from economies of scope, exploits economical scale or access capital in lower cost compares to smaller company. The higher the productivity, the higher company profitability would be. The finding which conducted by Feeny (2000) and Stierwald (2009) proves that size has positive impact to company profitability. Research result is in accordance with Meca & Ballesta (2011) and De Miguel et al. (2004), in Hariyanto and that negative connection shows that hypothesis 3 is rejected, negative connection shows that if size increases, the ROA will not increase. The bigger the company shows a bigger company organization structure so that the possibility is become increasingly bureaucratic. This thing causes more serious problem such as asymmetrical information and slow decision taking. Another explanation also supports that the bigger the company size then the stock return will be smaller because if company size is bigger it can be said that the stock price is relatively high and stable compare to smaller or second line company. With that the small stock fluctuation number will cause low stock return and affecting the company profitability, Murhadi (2011). Stock return decreasing will happen because of the possibility of company profitability decreasing.
Partial testing that done by t testing to examined variable, known that sales growth has significance level of 0.0463, with positive significant result. The result is in accordance with the hypothesis that sales growth defined as sales changes per year. Kesuma (2009) in Hansen and Juniarti (2014) say that sales growth is the increasing in sales number from year to year or time to time. Sales growth has impact in increasing company profitability and value. Sales growth marked by the increasing in market share which impacting the increasing in sales from company so that increasing also company profitability (Pagano and Schlvardi, 2003). Research result is in accordance with Deitina (2011) in research from Limbago and Juniarti (2014) also, whereas sales growth is the component to rate company prospect in future by looking at the total company sales change.

Determination Coefficient (R 2 )
Coefficient determination (Adjusted R 2 ) is 0.944. This thing shows that Return on Assets (ROA) can be explained by long term debt, short term debt, company size, and sales growth variables of 94.4% meanwhile the rest 5% explained by another variable out of the

Conclusion
From the hypothesis testing using test F, obtained count value of 69.578 with significance level of 0.000 in significance level of 0.05 then it can be stated that independent variables (long term debt, short term debt, company size, and sales growth) which represent capital structure affecting dependent variable (Return on Assets) in 5% significance level.
Based in test result using t testing, known that long term debt variable has significant negative impact to profitability, short term debt has significant negative impact to profitability, company size has significant negative impact to profitability, and sales growth has positive significant impact to profitability in business entity listed in SRI-KEHATI index in 2011-2015 period.
Based in determination coefficient (Adjusted R 2 ) value of 0.944. this result shows that Return on Asset (ROA) change can be explained by long term debt, short term debt, company size, and sales growth variables of 94.4% meanwhile the rest 5.6% can be explained by another variable outside of long term debt, short term debt, company size, and sales growth. This thing shows that variable used in this research with business entity sample listed in SRI-KEHATI index in 2011-2015 period can explain company profitability measured by using ROA Every company must desire high profitability, because of that the company need to pay attention to the capital structure. The using of long term or short term debt must be optimum so it can maximize stock holder profit. Besides that, company also need to pay attention to sales growth and company size. If company has big size, that thing can possibly be asymmetrical information and complicated bureaucracy so that it affects the company profitability.
This research is limited in testing the impact between independent variables to dependent variable. For other researcher, can develop by conduct future research about interaction between one independent variable to another independent variable testing, especially between debt and sales. Besides that, researcher can develop research by using independent variable that yet to be tested and also use bigger research sample.