Information Asymmetry and Capital Structure: A Case Study of Indonesia During 2008-2017
- 10.2991/assehr.k.210531.083How to use a DOI?
- Information Asymmetry, Stock Liquidity, Capital Structure, Leverage, Indonesia, Amihud
This research aims to determine the effect of the information asymmetry related to a stock on the capital structure of firms in Indonesia from 2008 to 2017. In this research, five capital structure proxies are used: market leverage, book value of leverage, cost of debt, cost of equity, and the difference between the cost of equity, and the cost of debt. An information asymmetry variable was measured with stock liquidity computed using the Amihud illiquidity ratio measure. This research uses the panel data generalized least squares method, with a pooled least squares, and fixed-effect model. The result shows that information asymmetry has a positive and significant effect on Indonesian firms’ capital structures, which indicates that an increase in information asymmetry can increase firms’ leverage.
- © 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/).
Cite this article
TY - CONF AU - Rahmatania Ekoputri Apriliana AU - Maria Ulpah PY - 2021 DA - 2021/05/31 TI - Information Asymmetry and Capital Structure: A Case Study of Indonesia During 2008-2017 BT - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019) PB - Atlantis Press SP - 666 EP - 672 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210531.083 DO - 10.2991/assehr.k.210531.083 ID - Apriliana2021 ER -