The Effect of Corporate Governance on Indonesian Capital Structure

Malelak, Mariana Ing and Ottemoesoe, Ridhotama Shanti Darsih (2013) The Effect of Corporate Governance on Indonesian Capital Structure. In: 8th Conference on Risk, Banking and Financial Stability, 24-09-2013 - 27-09-2013, Nusa Dua Bali - Indonesia.

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    The purpose of this research is to test whether there is an influence of corporate governance characteristics (Board Size, Board Composition, Percentage of Managerial Ownership and Institutional Shareholding) on capital structure in Indonesian Firms, using five control variables: tangibility, profitability, growth opportunity, size and cash holding. This research uses the non-financial firms listed in the Indonesian Stock Exchange (IDX) at the period of 2000-2010 and uses panel data regression analysis method. The results show that in the period of 2000-2010, institutional shareholding, profitability, size and cash holding had a significant effect on capital structure (long term debt ratio in market values). On the whole, all of the independent variables had significant effect on capital structure.

    Item Type: Conference or Workshop Item (Paper)
    Uncontrolled Keywords: Corporate Governance, Capital Structure, Board Size, Board Composition, Percentage of Managerial Ownership, Institutional Shareholding, Tangibility, Profitability, Growth opportunity, Size, Cash holding, Panel Data Analysis.
    Subjects: H Social Sciences > HG Finance
    Divisions: Faculty of Economic > Finance Management Program
    Depositing User: Admin
    Date Deposited: 05 Jul 2014 00:14
    Last Modified: 14 Aug 2014 17:37
    URI: http://repository.petra.ac.id/id/eprint/17268

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