The effect of good corporate governance on capital structure in financial sector firms listed on the Indonesia stock exchange over the period of 2012-2016

DOI

10.2991/insyma-19.2019.13How to use a DOI?

Keywords

managerial ownership, institutional investor, capital structure

Abstract

The purpose of this study is to examine the effect of board size, managerial ownership, institutional investors, profitability, size, and growth as the independent variables on the capital structure of all non-financial companies listed on the Indonesia Stock Exchange. This study used a quantitative perspective with linear regression and panel data models with a number of research observations of 1,625, consisting of 325 companies listed on the Indonesia Stock Exchange over the period of 2012-2016. The results of the study prove that managerial ownership, profitability, and size had a significant negative effect on capital structure. Whereas growth had a significant positive effect on the capital structure and board size and institutional investors had no significant effect on capital structure (debt ratio).

Copyright

© 2019, 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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TY  - CONF
AU  - Gladys Vashella Kumalasari
AU  - Werner R. Murhadi
AU  - Liliana Inggrit Wijaya
PY  - 2019/03
DA  - 2019/03
TI  - The effect of good corporate governance on capital structure in financial sector firms listed on the Indonesia stock exchange over the period of 2012-2016
BT  - Proceedings of the 16th International Symposium on Management (INSYMA 2019)
PB  - Atlantis Press
SP  - 48
EP  - 51
SN  - 2352-5398
UR  - https://doi.org/10.2991/insyma-19.2019.13
DO  - 10.2991/insyma-19.2019.13
ID  - Kumalasari2019/03
ER  -