THE EXAMINING THE CAPITAL STRUCTURE DETERMINANTS: EMPIRICAL ANALYSIS OFREAL ESTATE AND PROPERTY INDUSTRY IN INDONESIA

Abstract

This research investigates the effect capital structure on the leverage decision of real estate
and Property Company listed on the Indonesia Stock Exchange (IDX) .The population
consists of 45 property and Real Estate Company. The study 29 sample because of difficulty
in getting the data. The period under study is from 2010 to 2015. The data are taken from
property and real estate company annual reports. In this study using panel data and analysis
using pooled ordinary least square (OLS).The results showed that all coefficients are
significant for LEV variable. The finding showed that TAG variable is inconsistent with the
trade-off theory otherwise SIZE variable is consistent with the trade-off theory. ROA has a
positive effect on LEV. This indicates that consistent with the pecking order theory. RISK
variable is inconsistent with the agency theory.