The Role of Capital Structure Policy on Profitability in Property and Real Estate Companies
Journal Title: Dialektika : Jurnal Ekonomi dan Ilmu Sosial - Year 2022, Vol 7, Issue 1
Abstract
Property and real estate sector companies are showing increasing optimism. This is driven by the increasing public demand for private housing. A market that continues to grow is a good prospect for property and real estate sector companies. However, it is undeniable that the property and real estate sector companies are capital-intensive companies, so a large amount of capital is required. One alternative is the use of debt policy. If the use of debt is appropriate, of course, it can provide large returns in the form of company profits. This study seeks to explore the role of capital structure in profitability in property and real estate sector companies. The data used is secondary data obtained from the financial statements of property and real estate sector companies listed on the Indonesian Stock Exchange in 2016-2019. The results show that the capital structure policy as proxied by the Debt to Assets Ratio (DAR) has a positive effect on company profitability as proxied by Return on Equity (ROE) in relatively smaller and younger companies. While the Debt to Equity Ratio (DER) has no effect on ROE.
Authors and Affiliations
Setiawan
Keywords
Related Articles
- EP ID EP711162
- DOI https://doi.org/10.36636/dialektika.v7i1.677
- Views 66
- Downloads 0
Development of Standard Operational Procedures (SOP) Documents for Educational Tourism of Nanas Palaan Village
This research is a qualitative research that aims to solve the problems faced by management of Kampung Nanas Educational Tourism. The problem is the absence of SOP documents for various activities. Specifically, the obje...
Analysis of Debt Policy and Dividend Policy on Company Value in Indonesia
This study aims to analyze: 1) the effect of debt to equity ratio policy on firm value, 2) the effect of debt to asset ratio policy on firm value, 3) the effect of dividend yield ratio policy on firm value, 4) the effect...
Financial Literature, Financial Technology and Student Financial Behavior
The purpose of this study was to analyze the effect of financial literacy and financial technology toward the financial behavior. This type of research is explanatory research using a sample of 389 undergraduate students...
The Role of Capital Structure Policy on Profitability in Property and Real Estate Companies
Property and real estate sector companies are showing increasing optimism. This is driven by the increasing public demand for private housing. A market that continues to grow is a good prospect for property and real esta...
The Influence of Gross Domestic Product, Imports, and World Oil Prices on the Composite Stock Price Index
The Composite Stock Price Index (JCI) is a series of historical information regarding the movement of the combined stock price of all stocks up to a certain date. This study aims to determine the effect of Gross Domestic...