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Abstract

Systematic risk is a risk that cannot be avoided and eliminated by diversification, the fluctuation of this risk is influenced by macroeconomic factors. This study aims to analyze the effect of Degree of Economic Leverage (DEL), Degree of Operating Leverage (DOL), and Degree of Financial Leverage (DFL) on the property and agriculture sector in Indonesia. In this study, researcher used secondary data; those are weekly common stock return and weekly market return published by Indonesia Stock Exchange, for determining beta coefficients. Subsequently, sales, EBIT, EAT, and annual inflation are utilized to calculate DEL, DOL, and DFL. Samples were taken by using purposive sampling and sample selection criteria. This research used panel data regression analysis using E-views 9. The result of this research showed that (1) partially, only the variable DEL and DFL that influence significantly to systematic risks of stock on a property sector and (2) partially, only the variable DEL and DOL that influence significantly to systematic risks of stock on sector of agriculture. Therefore, investors should invest in property sector companies that have a low value of DEL, DOL, and DFL to minimize systematic risk of stocks. And in the agriculture sector companies investors should invest in companies that have a high value of DEL, DOL, and DFL to minimize the systematic risk of stocks. KEY WORDS Systematic risk, economic leverage, operating leverage, financial leverage, property, agriculture.above the DOL variable has a positive effect or is directly s. DOL variable has a probability value of 0.1256 with a coefficient value of 0.00827. These results indicate that every increase in 1 unit of DOL, so that the systematic risk of all issuers in the model will increase by 0.00827 units.coefficient are in accordance with the theory and hypothesis proposed in DOL has a positive effect on the same conditions as the Karuniandari ( 2006), Kartini and Nevsi Rizki Herine Tjun (2009) which showed a positive relationship between DOL and systematic risk on issuers of manufacturing and mining sub-This finding indicates that the DOL value can increase the value of stocks systematic risk in the property sector companies, which is marked by a positive but insignificant DOL Grifin and Dugan (2003). This finding indicates that EBIT changes because sales changes cannot explain systematic ted because a small change in the level of sales does not that can be seen in The increase in the level of sales in property sector companies is not proportional Based on Table 3 above the DFL variable has a positive effect on the real level of 5% r is directly proportional to stocks systematic risk. DFL variable has a probability value of 0.0013 with a coefficient value of 0.00961. These results indicate that for every increase in 1 e model rise by 0.00961 units.