DETERMINANT OF PROPERTY FIRM RISK: THE ROLE OF HOME BUILDING SEGMENT PERFORMANCE, INTEREST RATE, EXCHANGE RATE VOLATILITY AND BUSINESS UNCERTAINTY DUE TO COVID 19 PANDEMIC

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Immanuel Baroe, Alphin (2025) DETERMINANT OF PROPERTY FIRM RISK: THE ROLE OF HOME BUILDING SEGMENT PERFORMANCE, INTEREST RATE, EXCHANGE RATE VOLATILITY AND BUSINESS UNCERTAINTY DUE TO COVID 19 PANDEMIC. Graduate thesis, Institut IPMI.

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Abstract

This study investigates the determinants of financial risk in Indonesian property firms, with a particular focus on the performance of the home building segment. The research explores how home building segment profitability, home building inventory turnover, interest rates, and exchange rate volatility influence firm risk, and tests the moderating role of the COVID-19 pandemic. Drawing on data from 25 publicly listed property companies on the Indonesia Stock Exchange between 2013 and 2023, the study employs panel data regression methods to analyze both firm-specific and macroeconomic variables. Findings reveal that a higher home building inventory turnover robustly and significantly reduces firm risk, establishing operational efficiency as a primary risk mitigator. Home building segment profitability also significantly reduces risk, while greater exchange rate volatility is associated with increased firm risk. However, the direct impact of interest rates was found to be statistically insignificant. Notably, the study did not find statistical support for the hypothesis that the COVID-19 pandemic moderated these relationships. This research contributes to a deeper understanding of how internal financial performance and external economic conditions jointly shape the risk profile of property developers. It offers actionable insights for investors, property entrepreneurs, and regulators aiming to improve resilience by prioritizing core operational performance. Keywords: Firm Risk, Property Firms, Home Building Segment, Home building Segment Profitability, Inventory Turnover, Interest Rates, Exchange Rate Volatility, COVID-19, Panel Data Regression, Indonesia.

Item Type: Thesis (Graduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Bachelor of Business Administration
Depositing User: Dwi Selviyana
Date Deposited: 17 Dec 2025 04:32
Last Modified: 17 Dec 2025 05:00
URI: http://repository.ipmi.ac.id/id/eprint/2899

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