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Contraction of Capital Investment in Retail Trade Sub-Sector Companies on the Indonesia Stock Exchange

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  • Andy -
  • S. H. Hengky

Abstract

This study aims to compare the investment contraction in the retail trade sub-sector on the Indonesia Stock Exchange (IDX). This study examines the effect of profitability as measured by ROE on capital structure as measured by DER in sub-sector companies in IDX during 2016-2020. This type of research uses verification research with explanatory survey method and sample method of a purposive-sampling in which there are 18 samples of retail company sub-sectors. Methods of data analysis using panel data regression with the results- Profitability has a negative and significant effect on capital structure.

Suggested Citation

  • Andy - & S. H. Hengky, 2021. "Contraction of Capital Investment in Retail Trade Sub-Sector Companies on the Indonesia Stock Exchange," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 19-34, December.
    • Handle: RePEc:mth:ber888:v:11:y:2021:i:3:p:19-34
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    References listed on IDEAS

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    4. Hui Chen & Yu Xu & Jun Yang, 2012. "Systematic Risk, Debt Maturity, and the Term Structure of Credit Spreads," NBER Working Papers 18367, National Bureau of Economic Research, Inc.
    5. Saurabh Chadha & Himanshu Seth, 2021. "Ownership structure and capital structure: a panel data study," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 24(3), pages 385-396.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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