ABSTRACT
The purpose of this study is to analyze whether industry classification has an effect on capital structure and whether foreign ownership structure has more influence on capital structure than domestic ownership structure. This study used 524 companies listed in the Indonesia Stock Exchange for three periods, from 2014 to 2016. To test the hypothesis, the Ordinary Least Square (OLS) regression method was used. This study found that industry classification had an effect on capital structure. Companies that were classified as high growth industry had a significant positive effect on capital structure, while low growth industry had a significant negative effect. Furthermore, firms with a foreign ownership structure had a significantly higher capital structure than domestic ownership. The findings from this study indicate that firms with foreign ownership and firms in high growth industries are more attractive to debt holders in Indonesia.
