Abstract

This study aims to identify and analyze the effect of corporate diversification strategies and earnings management on capital structure. In this study the population taken were manufacturing companies listed on the Indonesia Stock Exchange during 2012-2016. Based on the specified population criteria. This study uses 250 companies through purposive sampling method. The data is organized and analyzed using SPSS22 statistic tool. The results of this study concluded that the firm's that earnings management has a significant effect on capital structure.

Key words: Corporate Diversification, Earnings Management, Capital Structure