Influence Ownership Institutional and Profitability, Against Capital Structure with Cost of Capital as Variable Moderating: Empirical Study of Property Companies Listed on the Indonesian Stock Exchange 2020 - 2022

Abstract

The purpose of this study is to ascertain how institutional ownership and profitability affect capital structure, taking into account cost of capital as a moderating factor. This study will employ a quantitative approach as its research methodology. The study's sample consisted of 92 property and real estate companies that were listed between 2020 and 2022 on the Indonesia Stock Exchange. 14 businesses were found to meet the sample criteria after the sample was determined using a purposive sampling technique. The corporate website and financial reports on www.idx.co.id were the sources of data used in this study. Multiple regression analysis is the data analysis technique used. According to the study's findings, institutional ownership has no discernible impact on capital structure, either directly or through the cost of capital. It has been demonstrated that profitability modifies capital structure in a direct and substantial way. According to the following findings, capital structure is unaffected by cost of capital. Subsequently, the outcomes of the simultaneous testing indicate that the combination of Institutional Ownership, Profitability, and Cost of Capital significantly influences the Capital Structure of the companies that are listed on the BEI between 2020 and 2022.