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

DOI

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/).

Download article (PDF)

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  -