Price Book Value Determination Panel Data Model on Property and Real Estate Companies (Compass 100 Stock Index in Indonesia Stock Exchange)

Abstract

This research is entitled Panel Data Model: Determining Price Book Value in Property and Real Estate Companies (The Case of the Kompas 100 Stock Index on the Indonesia Stock Exchange). The purpose of this study is to find the Effect of Debt to Equity Ratio, Return On Asset, and Asset Growth on Price Book Value using the panel data analysis method. The panel data estimation technique used in this study is a common effect, fixed effect or random effect model. In the common effect model of parameter estimation using the Ordinary Least Square (OLS) technique, where as for the fixed effect model of parameter estimation can be done using the Least Square Dummy Variable (LSDV), and for the random effect model of parameter estimation using the Generalized Least Square (GLS) technique. The final model used with the Fixed Effect Model approach from several property and real estate companies. The results showed that the capital structure proxied by debt to equity ratio (DER) had a positive and significant effect on the value of Price Book Value (PBV). This is because the amount of company capital obtained through debt can be used as a measure to see the success of managers' performance in managing the company. Profitability proxied Return on Assets (ROA) has a positive and significant effect on the value of Price Book Value (PBV), because the higher the ROA level, the better the company's ability to manage the assets it has. Meanwhile, the Asset Growth variable proxied by (TAG) is not significant to the Price Book Value (PBV).