THE DETERMINANT FACTORS OF INDONESIA’S PROPERTY AND REAL ESTATE FIRMS CAPITAL STRUCTURE

Abstract

The research aim is to examine the influence of sales growth, tangibility asset, business risk, liquidity and firm size to capital structure proxied by debt to equity ratio, with additional profitability as moderating variable of business risk and firm size influences capital structure in property and real estate companies listed in Indonesia Stock Exchange. This is a quantitative research which taken data from companies audited financial statement. There are five independent variables which are being examined by descriptive statistical analysis, classical assumption test, multiple linear regression and hypotheses testing. The population of this research is property and real estate companies and took 12 samples of companies fulfilled certain criteria in period of 2013-2018 annually. Technique used of multiple linear regression on panel data is Random Effect Model. The outcomes reveal a value of adjusted R-squared among dependent variable is 42.83% and the variables of tangibility asset, business risk and firm size have significant influence on capital structure partially in hypotheses testing. Simultaneously, sales growth, tangibility asset, business risk, liquidity and firm size have significant influence on capital structure in result of panel regression analysis. Profitability is not able to moderate the influence of business risk on capital structure and able to moderate the influence of firm size on capital structure.