Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia
Margarita Ekadjaja, Agustin Ekadjaja, Halim Putera Siswanto
Halim Putera Siswanto
Available Online 29 June 2020.
- 10.2991/aebmr.k.200626.051How to use a DOI?
- managerial ownership, institutional ownership, foreign ownership, firm size, asset structure
A firm‘s decision to use leverage becomes a controversial policy between the managers and shareholders. The aim of this study was to reveal the determinants that affect a firm’s decision to use leverage. Data was collected from financial reports of manufacturing firms in Indonesia during the years of 2010-2017. Based on data analysis by using Eviews 6.0, it can be revealed that institutional ownership, foreign ownership, and firm size positively and significantly affected a firm’s decision to use leverage. Meanwhile, asset structure had negative and significant effect, and managerial ownership had positive yet insignificant effect on such decision.
- © 2020, 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 - Margarita Ekadjaja AU - Agustin Ekadjaja AU - Halim Putera Siswanto PY - 2020 DA - 2020/06/29 TI - Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia BT - Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR PB - Atlantis Press SP - 296 EP - 300 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200626.051 DO - 10.2991/aebmr.k.200626.051 ID - Ekadjaja2020 ER -