The Effect of Profitability, Liquidity, Sales Growth and Assets Structure on the Capital Structure of Property and Real Estate Companies Listed on the Indonesia Stock Exchange, 2018/2021

Abstract

Since there is fierce rivalry in the business world today, firms must be able to thrive in order to accomplish their objectives. In this work, multiple linear regression analysis is employed for data analysis together with quantitative research and a descriptive methodology. Property and real estate firms listed on the Indonesia Stock Exchange (IDX) in the years 2018 through 2021 are the subject of the study. 80 property and real estate companies made up the study's sample. Up to 15 property and real estate companies were included in the study's samples. Based on the study's findings, it is clear that asset structure, liquidity, sales growth, and profitability all work together to significantly improve capital structure. While somewhat affecting profitability, liquidity, and sales growth, the capital structure is unaffected. Additionally, the capital structure is largely impacted by the asset structure.

Effect of Firm Size on Short Term Debt of Firms Listed on the Nairobi Securities Exchange, Kenya

“…As firm size grows, bankruptcy costs fall. Because prospective bankruptcy expenses represent a smaller portion of a company's worth for larger businesses than for smaller businesses, firm size should be associated positively with borrowing capacity [3]. In addition, larger enterprises have access to long-term finance through economies of scale in transaction costs that are not accessible to smaller firms.…”