Correlation analysis between liquidity, profitability and leverage towards capital structure in real estate and property companies listed on the indonesian stock exchange
The capital structure decision is very important for a firm in order to determine its capital efficiency since it is the combination between the long-term debt and investment which are very important for the firm?s financial operation. Moreover, each industry has a different capital structure decision. Real estate and property industry situation is unique because of the need of a very high asset which differentiate it with other type of industries. This research examines the correlation degree between liquidity, profitability and financial leverage towards capital structure using secondary data from 24 real estate and property companies listed on the Indonesian Stock Exchange from the period 2003-2012. The result of finding shows that all of the financial leverage ratios have significant relationship towards capital structure which is measured using Debt to Total Assets (DAR).
B01463 | (wh) | Available |
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