Analysis Of Factors Affecting Capital Structure ( Empirical Study on Sub Service Companies Property and Real Estate Sector Listed On Idx In 2017 - 2021 )

Authors

  • Awi Shantibhuana Institute
  • Jones Parlindungan Nadapdap Shantibhuana Institute
  • Kusmidi Suprianto Shantibhuana Institute
  • Markus Ardyan Shantibhuana Institute
  • Falvianus Christian Wada Widi Shantibhuana Institute

Keywords:

Profitability, asset growth, liquidity, capital structure

Abstract

The growth in population rate has resulted in the need for housing to increase as well, companies engaged in property and real estate are a good opportunity to obtain profits related to sales and investment, this can be seen in the growth of the country's Gross Domestic Product (GDP) during Covid-19 real estate made a good contribution in increasing the country's GDP. The increasing property prices are getting higher making this sector quite good in attracting investment interest for investors. However, there are some the problems faced by property and real estate companies during the Covid-19 pandemic are related to the company's capital structure, among them, the Danayasa Arithama Tbk (SCBD) company which experienced problems regarding the company's capital structure such as increased operating expenses, decreased revenue and increased debt so that it had to be delisted in 2020 and another case with the Lippo Cikarang Tbk company which postponed the Meikarta project due to several indicators such as increased operating expenses and Net profit that decreased. The method used in this study is to use panel data as many as 10 companies that are included in the research sample criteria. From the results of the study, the FEM model was obtained from the E-View 10 software, the FEM model concluded that partially liquidity and profitability had a significant effect on the capital structure while asset growth did not have a significant effect on the capital structure

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Date: 04/06/23 Time: 07:35

Sample: 2017 2021

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Total panel (balanced) observations: 50

Variable Coefficient Std. Error t-Statistic Prob.

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Published

2023-06-09

How to Cite

Awi, Jones Parlindungan Nadapdap, Kusmidi Suprianto, Markus Ardyan, & Falvianus Christian Wada Widi. (2023). Analysis Of Factors Affecting Capital Structure ( Empirical Study on Sub Service Companies Property and Real Estate Sector Listed On Idx In 2017 - 2021 ). Proceeding ADRI International Conference on Multidisciplinary Research, 1(1), 49–61. Retrieved from https://prosiding.p-adri.or.id/index.php/icadri/article/view/14

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Vol. 1 No. 1 (2023): June

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