Paper Title
The Effect of Capital Structure to Financial Performance of Firms in Indonesia

Abstract
This study examines the relationship of capital structure on financial performance of Indonesia firms in top exported commodities. This research uses Ordinary Least Square (OLS) regression. The samples are 125 Indonesia firms who are listed in Bloomberg during 2014-2018 with total of 625 panel data. The firms are categorized to Indonesia’s top five exported commodities which are basic material, industrial, energy, and consumer (cyclical and non-cyclical). The study uses three capital structures which are Debt to Equity (DTE), Debt to Total Capital (DTC), and Long Term Debt to Total Capital as independent variables. Three financial performance which are Return on Asset (ROA), Return on Equity (ROE), and Tobin’s Q as dependent variables. Two control variables which are industry and sales growth. The result showsmixed results with negative correlation or no correlation at all. The positive relationship is only seen on sales growth with financial performance. Industries also show mixed result with mostly no correlation with financial performance. Keywords - Capital Structure, Leverage Ratio, Financial Performance