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The Property and Real Estate sector plays a strategic role in supporting economic growth; however, its financial performance has been significantly affected by the economic disruption caused by the COVID-19 pandemic. This condition highlights the importance of identifying the factors that influence corporate financial performance, particularly asset management and capital structure. Accordingly, this study aims to analyze the effect of asset management and capital structure on the financial performance of Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. A quantitative research approach was employed using panel data regression analysis. The study population comprised 90 listed companies, while the research sample consisted of 74 companies selected through purposive sampling based on predetermined criteria. The findings reveal that asset management, measured by Total Asset Turnover (TATO), has a positive and significant effect on financial performance, whereas capital structure, measured by Debt to Equity Ratio (DER), does not have a significant partial effect. However, both variables simultaneously have a significant influence on financial performance. These results indicate that improving asset utilization efficiency contributes more substantially to profitability than increasing the proportion of debt financing. Therefore, companies are encouraged to optimize the productivity of their operational assets to enhance profitability, while investors should prioritize asset management efficiency rather than relying solely on leverage ratios when evaluating investment opportunities in the Property and Real Estate sector.
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Aprilla et al. (2026) studied this question.
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