Capital Structure Adjustment Speed: Evidence From Indonesian Property, Real Estate, and Construction Building Firms

This study examines the capital structure based on dynamic trade-off theory in property, real estate, and construction building companies Indonesia. We have used a data panel from 17 over years 2018 to 2021. There are two stages of testing this study. First, we estimate target leverage using Random Effect Model then find adjustment speed Fixed Model. The results prove that profitability has negative significant effect company's structure, firm size positive while growth does not influence it. also revealed Indonesia adjusted their toward optimal where was 25% per year or took 4 achieve structure. suggests government policies encouraging people's purchasing power support economic recovery.