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This research on capital structure aims to find out the optimum capital structure composition that can increase firm’s value. Optimum capital structure can be explained theoretically through two theories, namely the pecking order theory and the trade-off theory. Hypothesis testing was conducted to know better explanatory variables of these two theories. The sample was a purposive sampling from non financial companies. The data were analyzed using linear regression for pecking order theory and partial adjustment model for trade-off theory. The results show that non financial companies in Indonesia follow the pattern in the trade-off theory rather than pecking order theory.