528 © 2018 AESS Publications. All Rights Reserved. DETERMINANTS OF CAPITAL STRUCTURE AND THEIR IMPLICATIONS TOWARD FINANCIAL PERFORMANCE OF CONSTRUCTION SERVICE COMPANIES IN INDONESIA STOCK EXCHANGE (IDX) Luqman Hakim 1+ Faris Kasenda 2 1 Lecturer of Faculty of Economics, University Persada Indonesia Y.A.I Jakarta, Indonesia 2 Professional and Business Practitioners, University Persada Indonesia Y.A.I Jakarta, Indonesia (+ Corresponding author) ABSTRACT Article History Received: 28 May 2018 Revised: 27 June 2018 Accepted: 29 June 2018 Published: 2 July 2018 Keywords The size of the firm Asset utilization Corporate growth Liquidity Asset tangibility Capital structure. The purpose of this research are to know the influence of size of the firm, asset utilization, corporate growth, liquidity, asset tangibility, and capital structure on financial performance. The methods of this research used two model. Model I examine the effect of Corporate Size, Asset Utilization, Company Growth Potential, Liquidity, Asset Tangibility to Capital Structure. The proof of this model is done by using Model Panel Data. Based on Hausman's Test, the results show that p-value is greater than 5%, so it can be concluded that Random Effect Model is better to use. Model II examines the effect of Capital Structure, Company Size, Asset Utilization, Company Growth Potential, Liquidity, Asset Tangibility to Financial Performance. The proof of this model is done by using Model Panel Data. The Fixed Effect model is the selected model, since the random effect estimation can not be executed since E-views requires the number of individuals (cross section) to be larger than the coefficient including the intercept. The finding of this research is the size of the firm, asset utilization, corporate growth, liquidity, asset tangibility and capital structure simultaneous have a significant effect on financial performance. The most dominant variable of influence are capital structure and liquidity. The value of R2 is 0.768, which means that firm size, asset utilization, corporate growth, liquidity, asset tangibility and capital structure are together able to explain 76.8 percent variation of financial performance. Contribution/ Originality: The paper primary contribution is finding that the most dominant variable of influence are capital structure and liquidity on financial performance of construction service companies in Indonesia Stock Exchange (IDX). Implying that capital structure and liquidity when increasing to construction service companies that will contribute significantly to the financial performance. 1. INTRODUCTION The construction service industry is a capital-intensive industry, considering that for a construction service company it requires a large working capital, where generally internal funding is not sufficient to meet the existing needs. This makes construction service companies rely on external funding from banks or other sources. External International Journal of Asian Social Science ISSN(e): 2224-4441 ISSN(p): 2226-5139 DOI: 10.18488/journal.1.2018.88.528.533 Vol. 8, No. 8, 528-533 © 2018 AESS Publications. All Rights Reserved. URL: www.aessweb.com