The Influence of Asset Growth, Profitability, and Firm Size on the Capital Structure of Islamic Banking in the World Period 2011-2020

Abstract

This study aimed to know the influence of asset growth, profitability, and firm size on the capital structure of Islamic banking in the world. This study is quantitive with an explanatory approach. The population in this study consisted of 187 members of IFSB period 2022, and by using a purposive sampling technique there was 18 Islamic banks that used as a samples. The data used was secondary and the data collection method was done by accessing the annually published financial reports on the official website of each Islamic banks from 2011 until 2020. The data analysis used panel data regression with Eviews10. The results show that partially asset growth and firm size have a significant positive effect on the capital structure of Islamic banking in the world, yet profitability has a significant negative effect on capital structure of Islamic banking in the world. Meanwhile, simultaneously asset growth, profitability, and firm size have a significant effect on capital structure of Islamic banking in the world.