Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)

Information Asymmetry and Capital Structure: A Case Study of Indonesia During 2008-2017

Authors
Rahmatania Ekoputri Apriliana, Maria Ulpah
Corresponding Author
Maria Ulpah
Available Online 31 May 2021.
DOI
https://doi.org/10.2991/assehr.k.210531.083How to use a DOI?
Keywords
Information Asymmetry, Stock Liquidity, Capital Structure, Leverage, Indonesia, Amihud
Abstract

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.

Copyright
© 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/).

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Volume Title
Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 May 2021
ISBN
978-94-6239-385-1
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.210531.083How to use a DOI?
Copyright
© 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  - https://doi.org/10.2991/assehr.k.210531.083
ID  - Apriliana2021
ER  -