Determinants that affect the capital structure of small and medium industries (Survey in Textile and Textile Product Industry of Bandung Region)

Abstract

This study aimed to identify factors that affect capital structure of small and medium industries. Two main factors that affect capital structure in this research are financial and institutional factors, which consist of Bank and Non-Bank institutional. Objects in this study are small and medium industries in the sub-sectors of textile and textile product that located in centers of industry, spread across 15 districts in Bandung Regency . The types of analysis in this research are descriptive quantitative and qualitative research, data collection techniques used are in-depth interviews through a structured interview guide. Prediction of the capital structure by using logit regression shows that capital structure is significantly affected by financial and institutional factors.