DETERMINANTS OF CAPITAL STRUCTURE’S ADJUSTMENT SPEED: EMPIRICAL ANALYSIS OF REAL ESTATE, PROPERTY, AND CONSTRUCTION FIRMS
| Autor: | Subiakto Soekarno, Eggy Muhammad Prayoga, Indra Yudha Mambea |
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| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Jurnal Bisnis dan Manajemen, Vol 22, Iss 1, Pp 51-64 (2021) |
| Druh dokumentu: | article |
| ISSN: | 1412-3681 2442-4617 |
| DOI: | 10.24198/jbm.v22i1.545 |
| Popis: | This study explored the determinants of capital structure, optimal capital structure, and adjustment speed in real-estate, property, and construction firms in Indonesia. It conducted a quantitative analysis of the annual report of 25 listed firms by employing a generalized method of moment approach with panel data to estimate the result. Results showed that the determinants of capital structure, such as profitability, tangibility, size, and liquidity, have a negative impact on leverage. By contrast, a non-debt tax shield has a positive impact. Based on the regression result, firms have an optimal capital structure target with a yearly adjustment speed of 80%. Furthermore, calculation of optimal target structure shows that firms require approximately three years to meet the discrepancy between their current capital structure and the targeted capital structure. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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