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THE EFFECT OF CAPITAL STRUCTURE ON PROFITABILITY OF PROPERTY AND CONSTRUCTION COMPANIES IN INDONESIA

Semuel, Hatane and WIDJOJO, LISKE (2016) THE EFFECT OF CAPITAL STRUCTURE ON PROFITABILITY OF PROPERTY AND CONSTRUCTION COMPANIES IN INDONESIA. IJRDO-Journal of Business Management, Vol. 2 (Issue ). pp. 12-20. ISSN ISSN: 2455-6661

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    Abstract

    The effect of capital structure on profitability has been discussed many times. The static order theory claims positive effect is given by capital structure, but the pecking order theory claims the contradictive one. Data of this paper is taken from 29 construction and property companies for 2009-2013 periods. The analysis method is structural equation modeling. The short term debt is founded positively affect on profitability. According to the result, property and construction companies in Indonesia should build more trust to short term debt sources’s such as property buyers, sub-contractors, and material suppliers.

    Item Type: Article
    Uncontrolled Keywords: capital structure, profitability, static order, pecking order
    Subjects: H Social Sciences > HF Commerce
    Divisions: Graduate Program > Economic Management
    Depositing User: Admin
    Date Deposited: 07 Jun 2016 00:47
    Last Modified: 31 Oct 2016 15:17
    URI: http://repository.petra.ac.id/id/eprint/17960

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