Author:
Sihombing Febie Tania,Kristanti Farida Titik
Abstract
The aim of this research is to determine the influence of asset tangibility, liquidity, non-debt tax shield, business risk, growth and firm size on the capital structure of property and real estate sector companies listed on the Indonesia Stock Exchange in 2014-2021. A dynamic panel data regression model with the Generalized Method of Moment (GMM) estimator is applied in this research. The results show that determinants simultaneously influence capital structure. Asset tangibility, growth and firm size partially have a significant effect on capital structure, while liquidity, non-debt tax shield and business risk partially have no effect on capital structure. Therefore, the formation of an optimal capital structure is expected to take into account tangible assets, growth rate and company size in order to maximize company value.
Reference29 articles.
1. Alipour, M., Mohammadi, M. F. S., & Derakhshan, H. (2015). Determinants of capital structure: An empirical study of firms in Iran. International Journal of Law and Management, 57(1), 53-83. https://doi.org/10.1108/IJLMA-01-2013-0004.
2. Alnajjar, M. I. M. (2015). Business risk impact on capital structure: A case of Jordan industrial sector. Global Journal of Management and Business Research, 15(1), 1-7. https://globaljournals.org/GJMBR_Volume15/1-Business-Risk-Impact-on-Capital-Structure.pdf.
3. Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte carlo evidence and an application to employment equations. Review of Economic Studies, 58(2), 277–297. https://EconPapers.repec.org/RePEc:oup:restud:v:58:y:1991:i:2:p:277-297.
4. Bairizki, A., Agusfianto, N. P., Herawati, N., Fariantin, E., Khotmi, H., Maqsudi, A., Murjana, I. M., & Rachmawati, T. (2022). Dasar-dasar manajemen keuangan. Seval Literindo Kreasi.
5. Clark, T. S., & Linzer, D. A. (2015). Should I use fixed or random effects?. Political Science Research and Methods, 3(2), 399–408. https://doi.org/10.1017/psrm.2014.32.