Do Industry and Religion Affect Capital Structure

Implementation of the Bank based system and pecking order theory will encourage the preference for the use of debt that is greater than equity. The research data as much as 759 units of observation in the manufacturing industry sector which consists of basic industry and chemicals, miscellaneous industry and consumer goods industry during the period, 2014 - 2018 The results showed that debt preference is insignificantly influenced by the manufacturing industry sector, however rather is influenced by financial and risk factors. In addition, the financial market tends to be volatile in the long run, hence that there are companies that do not prioritize debt in financing. Companies included in Jakarta Islamic Index (JII) as a religion proxy are unable to change the company culture, including managers in capital structure decisions