Contraction of Capital Investment in Retail Trade Sub-Sector Companies on the Indonesia Stock Exchange
Author(s) -
Andy Andy,
S. H. Hengky
Publication year - 2021
Publication title -
business and economic research
Language(s) - English
Resource type - Journals
ISSN - 2162-4860
DOI - 10.5296/ber.v11i3.18734
Subject(s) - profitability index , stock exchange , nonprobability sampling , panel data , business , investment (military) , stock (firearms) , sample (material) , econometrics , finance , economics , engineering , mechanical engineering , population , demography , sociology , politics , political science , law , chemistry , chromatography
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.
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