Analysis of Factors Affecting Funding Decisions in Property and Real Estate Sector Companies on the IDX

Oct 13, 2025 by windailys.com 10 views

Analysis of Factors Affecting Funding Decisions in Property and Real Estate Sector Companies on the IDX

Introduction

The property and real estate sector is a significant contributor to the Indonesian economy, with numerous companies listed on the Indonesia Stock Exchange (IDX). However, accessing funding sources is a crucial challenge for these companies, as it directly impacts their ability to achieve business goals and sustain growth. This study aims to investigate the factors that influence funding decisions in property and real estate companies listed on the IDX, with a focus on the moderating effect of institutional ownership.

Literature Review

Previous studies have identified various factors that influence funding decisions in companies, including company size, asset structure, and profitability. However, the role of institutional ownership as a moderating variable has received limited attention. Institutional ownership refers to the ownership of a company's shares by institutional investors, such as pension funds, insurance companies, and investment managers. These investors have a significant influence on the companies they own, and their presence can impact funding decisions.

Institutional Ownership as a Moderating Variable

Institutional ownership can play a complex role in funding decisions. On one hand, institutions can demand good and transparent corporate governance, which can encourage companies to make more conservative and sustainable funding decisions. On the other hand, institutions may also exert pressure on companies to prioritize short-term gains over long-term sustainability, potentially leading to more aggressive funding strategies.

Methodology

This study uses a comparative causal method to analyze the factors that influence funding decisions in property and real estate companies listed on the IDX. The research population covers all companies whose financial statements have been audited and registered on the IDX. Sampling was carried out using the census method and time series, resulting in 47 companies selected as samples, producing a total of 141 observations.

Data was collected through the documentation method and analyzed using multiple linear regression and residual tests to test the effect of moderating variables. The study aims to investigate the following research questions:

What are the factors that influence funding decisions in property and real estate companies listed on the IDX?
Does institutional ownership moderate the relationship between funding decisions and company size, asset structure, and profitability?

Results

The results of this study show that company size variables, asset structures, and profitability have a significant influence on funding decisions. This means that these three variables together play an important role in determining how property companies and real estate in the IDX obtained funds.

Partial Test Results

The partial test results show that company size variables and profitability (measured by the ratio of net profit margin) have a significant effect on funding decisions. This suggests that companies with larger sizes and higher profitability rates tend to have more access to various sources of funding.

Residual Test Results

The residual test confirms that institutional ownership is able to moderate the relationship between funding decisions and company size, asset structure, and profitability. This means that the influence of the three variables on funding decisions is influenced by the level of institutional ownership in the company.

Discussion

The findings of this study have important implications for property and real estate companies listed on the IDX. They need to understand that factors such as company size, profitability, and asset structure, as well as the influence of institutional ownership, play an important role in accessing funding sources. By understanding these factors, companies can create more effective strategies to get funding and achieve their business goals.

Conclusion

This study contributes to the existing literature on funding decisions in property and real estate companies by investigating the moderating effect of institutional ownership. The findings highlight the importance of considering institutional ownership as a moderating variable in funding decisions. The study also highlights the need for further research on the effect of institutional ownership in the property and real estate sector.

Recommendations

Based on the findings of this study, the following recommendations are made:

Property and real estate companies listed on the IDX should consider the moderating effect of institutional ownership when making funding decisions.
Companies should prioritize good and transparent corporate governance to attract institutional investors and improve access to funding sources.
Further research is needed to investigate the effect of institutional ownership on company management strategies and practices in the property and real estate sector.

Limitations

This study has several limitations that should be acknowledged. Firstly, the study only focuses on property and real estate companies listed on the IDX, which may limit the generalizability of the findings. Secondly, the study uses a cross-sectional design, which may not capture the dynamic nature of funding decisions. Finally, the study relies on secondary data, which may be subject to limitations in terms of accuracy and completeness.

Future Research Directions

This study highlights the need for further research on the effect of institutional ownership in the property and real estate sector. Future studies could investigate the following research questions:

How does institutional ownership affect company management strategies and practices in the property and real estate sector?
What are the implications of institutional ownership on the sustainability of funding decisions in property and real estate companies?
How can property and real estate companies listed on the IDX improve their access to funding sources by considering the moderating effect of institutional ownership?

References

[List of references cited in the study]

Appendices

[Appendices containing additional information, such as data collection instruments and statistical analysis results]
Frequently Asked Questions (FAQs) on Analysis of Factors Affecting Funding Decisions in Property and Real Estate Sector Companies on the IDX

Q1: What is the main objective of this study?

A1: The main objective of this study is to investigate the factors that influence funding decisions in property and real estate companies listed on the Indonesia Stock Exchange (IDX), with a focus on the moderating effect of institutional ownership.

Q2: What are the key factors that influence funding decisions in property and real estate companies?

A2: The key factors that influence funding decisions in property and real estate companies are company size variables, asset structures, and profitability. These factors together play an important role in determining how property companies and real estate in the IDX obtained funds.

Q3: What is the role of institutional ownership in funding decisions?

A3: Institutional ownership can play a complex role in funding decisions. On one hand, institutions can demand good and transparent corporate governance, which can encourage companies to make more conservative and sustainable funding decisions. On the other hand, institutions may also exert pressure on companies to prioritize short-term gains over long-term sustainability, potentially leading to more aggressive funding strategies.

Q4: How does institutional ownership moderate the relationship between funding decisions and company size, asset structure, and profitability?

A4: The residual test confirms that institutional ownership is able to moderate the relationship between funding decisions and company size, asset structure, and profitability. This means that the influence of the three variables on funding decisions is influenced by the level of institutional ownership in the company.

Q5: What are the implications of this study for property and real estate companies listed on the IDX?

A5: The findings of this study have important implications for property and real estate companies listed on the IDX. They need to understand that factors such as company size, profitability, and asset structure, as well as the influence of institutional ownership, play an important role in accessing funding sources. By understanding these factors, companies can create more effective strategies to get funding and achieve their business goals.

Q6: What are the limitations of this study?

A6: This study has several limitations that should be acknowledged. Firstly, the study only focuses on property and real estate companies listed on the IDX, which may limit the generalizability of the findings. Secondly, the study uses a cross-sectional design, which may not capture the dynamic nature of funding decisions. Finally, the study relies on secondary data, which may be subject to limitations in terms of accuracy and completeness.

Q7: What are the future research directions based on this study?

A7: This study highlights the need for further research on the effect of institutional ownership in the property and real estate sector. Future studies could investigate the following research questions:

How does institutional ownership affect company management strategies and practices in the property and real estate sector?
What are the implications of institutional ownership on the sustainability of funding decisions in property and real estate companies?
How can property and real estate companies listed on the IDX improve their access to funding sources by considering the moderating effect of institutional ownership?

Q8: What are the practical implications of this study for investors and stakeholders?

A8: The findings of this study have important implications for investors and stakeholders. They need to understand that institutional ownership can play a significant role in influencing funding decisions in property and real estate companies. By considering the moderating effect of institutional ownership, investors and stakeholders can make more informed decisions about their investments.

Q9: What are the policy implications of this study for regulatory bodies?

A9: The findings of this study have important implications for regulatory bodies. They need to consider the moderating effect of institutional ownership when developing policies and regulations related to funding decisions in property and real estate companies.

Q10: What are the future research directions for this study?

A10: This study highlights the need for further research on the effect of institutional ownership in the property and real estate sector. Future studies could investigate the following research questions:

How does institutional ownership affect company management strategies and practices in the property and real estate sector?
What are the implications of institutional ownership on the sustainability of funding decisions in property and real estate companies?
How can property and real estate companies listed on the IDX improve their access to funding sources by considering the moderating effect of institutional ownership?