DETERMINANT FACTOR OF TOURISM INDUSTRY CAPITAL STRUCTURE OF TOURIST ATTRACTION, HOTEL, RESTAURANT, TOUR AND TRAVEL COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Abstract

This research analyze the influence of capital structure determinant factor in which trade off theory (TOT) or pecking order theory (POT) is applied to figure out the proportion of debtand equity financing decision in tourism industry companies. The common effect modelpooled EGLS) method is used. The data panel includes 26 tourism industry companies consisting tourist attraction, hotel, restaurant, tour and travel listed in Indonesia Stock Exchange 2008 – 2012. Determinant factor in which influence significantly the proportion of debt and equity financing decision in tourism industry are liquidity, profitability, systematic risk, business risk, and size, however working capital and growth are not. TOT mostly is applied in tourism industry capital structure financing decision. Tourist attraction companies tend to apply TOT, while hotel, restaurant, tour and travel companies apply both TOT and POT