The Influence of Capital Structure and Good Corporate Governance on Stock Prices in Real Estate and Property Companies Listed on the Indonesia Stock Exchange with Profitability as a Mediating Variable
Keywords:
Capital Structure, Good Corporate Governance, Profitability, Share Price, Return on AssetsAbstract
This research aims to analyze the influence of capital structure and good corporate governance on the share price of real estate and property companies listed on the Indonesia Stock Exchange (IDX), with profitability as a mediating variable. A quantitative approach is used with secondary data in the form of annual financial statements from 75 companies during the period 2020–2024. The analysis method used is path analysis to test the direct and indirect relationships between variables. The results of the research show that the capital structure has a significant negative effect and good corporate governance has a significant positive effect on the stock price. In addition, profitability has been proven to be able to mediate the influence of capital structure on stock prices, but it is not able to mediate the influence of good corporate governance on stock prices. In addition, profitability has been proven to be able to mediate the influence of capital structure and good corporate governance on stock prices. These findings provide empirical evidence that balanced capital structure and strong governance practices are crucial for enhancing firm value in Indonesia's property sector, with profitability serving as an important intervening mechanism. The study offers practical insights for corporate managers optimizing financial strategies and investors making portfolio decisions in emerging markets.
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Copyright (c) 2025 Marjan Laraswati, Rosyeni Rasyid
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