At this time, business growth requires proper company's financial strategy, especially by managing the capital structure to meet funding need of business operations. This research describes the impact of capital structure on financial performance of finance company listed on the Indonesia Stock Exchange during the years 2009-2013. The dependent variable in this study is financial performance composed of return on assets ratio (ROA), return on equity ratio (ROE) and price-to-earnings ratio

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... While the independent variable in the form of capital structure is the ratio of debt to total assets (DAR) and the ratio of debt to total equity (DER). The result of panel data regression analysis showed that the capital structure has negative significant effect on financial performance of ROA and ROE, but has positive significant effect on PER. Based on these results, the finance companies should apply the precautionary principle in managing capital resources coming from debt financing , because the increased component of excessive debt in the capital structure of the company could lead to an increase in the financial burden that affects the reduction in company's profit. Dalam menghadapi persaingan, setiap perusahaan harus bertumbuh dan berkembang secara berke-lanjutan agar mendapatkan kepercayaan dari para stakeholders. Untuk mendukung pertumbuhan dan perkembangan bisnis, perusahaan memerlukan pendanaan atau sumber modal agar bisa men-danai aktivitas operasional dan investasinya. Manajemen perusahaan senantiasa dihadapkan pada keputusan untuk menentukan komposisi struktur modal antara modal internal dan eks-ternal. Menurut Brigham (2006), modal adalah jum-lah dari utang jangka panjang, saham preferen, dan ekuitas saham biasa, atau mungkin pos-pos tersebut plus utang jangka pendek yang dikenakan bunga. Menurut Weston dan Brigham (1994) salah satu keputusan penting manager keuangan agar tetap berdaya saing dalam jangka panjang adalah kepu-tusan mengenai struktur modal. Kombinasi pemilih-an struktur modal (Sundjaya & Barlian, 2003) meru-pakan hal penting yang harus diperhatikan oleh