THE EFFECT OF SALES GROWTH, BUSINESS RISK, AND ASSET STRUCTURE ON CAPITAL STRUCTURE IN THE PROPERTY AND REAL ESTATE SECTOR COMPANIES IN INDONESIA

Abstract

This study analyzes the influence of sales growth, business risk, and asset structure on capital structure in property and real estate companies in Indonesia. The research method used is quantitative research. The population in this study consists of property and real estate companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. A purposive sampling technique was used to select 28 companies with 84 data observations. The data were analyzed using panel data regression through EViews 12 software. The results indicate that sales growth has a positive and significant effect on capital structure. In contrast, both business risk and asset structure show a negative and significant influence. These findings highlight how growth potential encourages the use of debt, while higher risk levels and a greater proportion of fixed assets tend to reduce reliance on external financing.