The Determinant of Debt Policy with Investment Opportunity Set as Moderating Variable – A Study in Indonesia Property and Real Estate Sector on the Indonesia Stock Exchange

Debt policy is a policy carried out by managers in determining sources of funds both internally and externally. Managers must determine the appropriate proportion of debt by paying attention to the risk of such debt and must be careful in selecting the most profitable source of funding for the company by analyzing the optimal capital structure to balance the risk and rate of return for the company and shareholders. This study aims to analyze the influence of Profitability and Managerial Ownership on Debt Policy with Investment Opportunity Set as a Moderating Variable in Property and Real Estate Sector Companies on the Indonesia Stock Exchange. This type of research is quantitative research with a population of 92 companies. The sampling technique uses the purposive sampling method and samples were obtained from 27 companies from 2019-2023.
The results show that the variables of Profitability and Managerial Ownership have a negative effect on Debt Policy, while the Investment Opportunity Set is unable to moderate the variables of Profitability and Managerial Ownership on Debt Policy. The author's suggestion for the next research is to be able to add independent variables, increase the number of samples, use other sectors and use the current time range.