THE EFFECT OF INFLATION LEVELS, TANGIBLE ASSET AND BUSINESS RISK ON CAPITAL STRUCTURE

Abstract

This research aims to determine the influence of Inflation Levels, Tangible Assets and Business Risk on Capital Structure in Property and Real Estate sector companies listed on the Indonesia Stock Exchange in 2018-2022. The research method used is a quantitative descriptive approach. The population in this study was 93 Property and Real Estate sector companies listed on the Indonesia Stock Exchange in 2018-2022. The sample in this research was 19 companies with a purposive sampling method as a sampling technique. Hypothesis testing in this research uses panel data regression analysis using Eviews version 12 software. Based on the results of panel data regression analysis, it shows that the Inflation Level has a positive effect on Capital Structure, Tangible Assets has a negative effect on capital structure and Business Risk has no effect on Capital Structure. Simultaneously the Inflation Level, Tangible Assets and Business Risk simultaneously influence the Capital Structure.