Effect of Profitability, Size, and Asset Growth on Capital Structure of Indonesian Property Firm

Abstract

This study aims to analyze the effect of profitability, firm size, and asset growth on capital structure in property and real estate subsector companies listed on the Indonesia Stock Exchange during the 2019–2022 period. This research adopts a quantitative approach using multiple linear regression analysis. The data used are secondary data in the form of annual financial reports obtained from the official website of the Indonesia Stock Exchange. The results show that profitability has a negative and significant effect on capital structure, firm size has a positive and significant effect on capital structure, and asset growth has no significant effect on capital structure. The implications of this study provide insights for company management on the importance of considering profitability and firm size in making financing decisions.