Abstract
This research is to recognize the factors supporting the property and real estate company in determining the capital structure composition. The population of this research is all the property and real estate company listed on the Indonesia Stock Exchange 2013 to 2018. There are 48 companies listed until 2019. The data analysis employs a stratum test. The results of this research are the company’s performance, profitability influencing the capital structure, growth that does not influence the capital structure, nondebt tax shield influencing capital structure, and liquidity does not influence capital structure. In the company’s risk, the collateral value of assets influences capital structure; on the other hand, the business risk does not influence the capital structure. In the company’s characteristics, company size does not influence the capital structure.
Highlights
Indonesia has the largest population, ranked fourth after the United States, but it is undeniable that the equal distribution of boarding access is not realized yet
The trade-off model assumes that the company capital structure is a result of a tradeoff from the benefits of tax by using debt with the cost that will arise as a consequence of using debt
This research examines the performance, risk, and characteristic toward capital structure of property and real estate companies listed on Indonesia Stock Exchange 2013 to 2018
Summary
Indonesia has the largest population, ranked fourth after the United States, but it is undeniable that the equal distribution of boarding access is not realized yet. According to the Indonesian Stock Exchange, a company that the business engages in the existing property is categorized in the real estate and property sector. Tight competition is seen from each property and real estate agency; according to the Indonesian Stock Exchange, in 2007, there are 38 companies in the property and real estate, and it grows to 48 listed companies in 2018. Internal financing source comes from saved profits and owner’s capital deposits. External financing source comes from investors, creditors, and company owners. About DAR levels of the property and real estate company. Choosing the right financing influences the company's operational activity so it needs to be studied what factors supporting property and real estate companies in determining the capital structure composition
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