Comparative Analysis Debt to Equity Ratio and Price to Book Value in State-Owned Enterprises and Private Companies

Literature Study on Construction and Building Sub Sector Emitents

DOI

10.2991/aebmr.k.210831.129How to use a DOI?

Keywords

Debt to Equity Ratio, Price to Book Value, Risk and State Owned Enterprises

Abstract

This research was conducted to determine the comparison of Debt to Equity Ratio (DER) and Price to Book Value (PBV) between State-Owned Enterprises (SOEs) and private companies that have been listed on the Indonesia Stock Exchange in the category of Building Construction Sub Sector. The problem that often occurs was conducting fundraising through debt which causes high DER levels. However, from previous studies it was known that there is a positive relationship between the DER and PBV. This research was conducted qualitatively with analytical descriptive methods and used secondary data obtained from the IDX. The results showed that the DER level of SOEs was greater than private issuers and the industry average, and the PBV of SOEs issuers was smaller than PBV of private issuers and the industry average. The DER level was inversely proportional to the PBV level, and contradict with the previous studies.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dudi Hendra Fachrudin
AU  - Ratih Huriyati
AU  - Ikin Solikin
AU  - Cahyat Rohyana
PY  - 2021
DA  - 2021/09/02
TI  - Comparative Analysis Debt to Equity Ratio and Price to Book Value in State-Owned Enterprises and Private Companies
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 680
EP  - 685
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.129
DO  - 10.2991/aebmr.k.210831.129
ID  - Fachrudin2021
ER  -