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Original Research

THE ROLE OF CAPITAL STRUCTURE IN STOCK RETURN MODELS IN PROPERTY AND REAL ESTATE COMPANIES

ERION 1, HAMDY HADY 2, and YULI ZAIN 3.

Vol 20, No 02 ( 2025 )   |  DOI: 10.5281/zenodo.14854829   |   Author Affiliation: Faculty of Economics and Business - Postgraduate Doctor of Management Science Universitas Persada Indonesia Y.A.I- Jakarta 1,2,3.   |   Licensing: CC 4.0   |   Pg no: 72-91   |   Published on: 07-02-2025

Abstract

The purpose of the study is to conduct analysis and answer the research gap that occurs among researchers and the phenomenon that occurs where leverage as one of the risk elements is not a matter of concern for capital market players, especially the Indonesia Stock Exchange. This type of research is quantitative with a multiple regression analysis method of panel data using the research object of property and real estate sector companies listed on the Indonesia Stock Exchange. By using the purposive sampling method, a cross section of twenty-five companies was obtained as observations in this study and with a time series for five years so that this study further formulates to maximize stock returns through Leverage as an intervening variable. There are two research models that are integrated into one and each goes through the stages of model selection testing, namely the Chow Test, the Hausman Test. The results of the first research model using endogenous capital structure variables, all exogenous macroeconomic variables, interest rates and the rupiah exchange rate against the US dollar cannot explain their influence on capital structure. However, the company's fundamental exogenous variables can all explain their influence significantly on capital structure. The results of the second research model using stock return as an endogenous variable are different from the first model, namely all exogenous macroeconomic variables can explain their influence on stock return, while exogenous variables other than liquidity and capital structure which are also intervening variables cannot explain their influence on stock return. These results are expected to help as a guideline for public companies to gain market appreciation which is proxied into stock return.


Keywords

Leverage, Stock Return, Current Ratio, Return on Asset, Commercial Property Price Index, Interest Rate, Exchange Rate.