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IJSTR >> Volume 9 - Issue 11, November 2020 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



The Relationship Between Leverage And The Value Of Real Estate Companies Listed

[Full Text]

 

AUTHOR(S)

Dwiatmanto

 

KEYWORDS

Leverage, Investment, Dividends, Real Estate, Indonesia Stock Exchange

 

ABSTRACT

To determine the relationship between leverage and the value of real estate companies listed on the Indonesia Stock Exchange with mediators in the form of investments and dividends. The population used in this study was 44 real estate companies listed on the Indonesia Stock Exchange. There is one exogenous variable, namely leverege (X) and two endogenous variables, namely dividend (Y1), and firm value (Y2). The tool used as an analysis method is Generalized Structural Component Analysis (GSCA). The study finds indications that the use of leverage by companies affects the dividend policy, for cases in Indonesia. Creditors have an interest in channeling funds to the company, dividend payments will cause the transfer of welfare from creditors to shareholders of the company, is weak, because there is already an alignment of interests between the creditors and the company. The negative impact of using high leverage on the creation of the company value. High dividend payments will cause a decrease in the value of the company. The market will react negatively when a company pays dividends. The reason is that when a company pays dividends, the company is indicated not to have a profitable growth opportunity or investment in the future. Previous studies conducted tests on the interaction between leverege, investment, dividends, and company value with the results that indicate that inconsistencies are recorded in the results of research that cause gaps. The focus of this research is the real estate industry which is listed on the Indonesia Stock Exchange.

 

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