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Determinants of Debt Policy of Real Estate and Property Companies Listed on the Indonesia Stock Exchange

Author

Listed:
  • Endri Endri

    (Universitas Mercubuana, Jakarta, Indonesia,)

  • Bob Mustafa

    (Politeknik Negeri Pontianak, Indonesia.)

  • Oscar Rynandi

    (Politeknik Negeri Pontianak, Indonesia.)

Abstract

This study aims to examine and analyze the effect of corporate tax rate, non-debt tax shield, investment opportunity set, profitability, and sales growth to the level of debt (leverage) on real estate and property companies listed on Indonesia Stock Exchange Period 2011-2015. This study uses panel data regression with fixed effect model to estimate 40 companies selected through purposive sampling. The results showed that corporate tax rate, non-debt tax shield, investment opportunity set, profitability, and sales growth have a significant effect simultaneously on debt level. Partially, from the five independent variables are known there are three variables that significantly affect the leverage of corporate tax rate, investment opportunity set, profitability, while the other two variables namely Non-debt Tax Shield and Sales Growth have no significant effect. This shows that Non-debt Tax Shield and Sales Growth statistically does not affect the level of debt in the real estate and property companies listed on the Indonesia Stock Exchange.

Suggested Citation

  • Endri Endri & Bob Mustafa & Oscar Rynandi, 2019. "Determinants of Debt Policy of Real Estate and Property Companies Listed on the Indonesia Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 96-104.
    • Handle: RePEc:eco:journ1:2019-02-11
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    References listed on IDEAS

    as
    1. Songul KAKILLI ACARAVCI, 2015. "The Determinants of Capital Structure: Evidence from the Turkish Manufacturing Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 158-171.
    2. Dharmendra Singh, 2016. "A Panel Data Analysis of Capital Structure Determinants: An Empirical Study of Non-Financial Firms in Oman," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1650-1656.
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    Cited by:

    1. Sunaryo Sunaryo & Alvia Santoni & Endri Endri & Muhammad Nusjirwan Harahap, 2020. "Determinants of Capital Adequacy Ratio for Pension Funds: A Case Study in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 203-213, July.
    2. Endri Endri & M. Iqbal Rasyid Supeni & Yanti Budiasih & Matdio Siahaan & A. Razak & Sudjono Sudjono, 2021. "Oil Price and Leverage for Mining Sector Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 24-30.

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    More about this item

    Keywords

    Tax; Shield; Profitability; Leverage; Property.;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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