Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)

Determinants of Corporates Leverage in Indonesia

Authors
Aang Munawar
Corresponding Author
Aang Munawar
Available Online 25 May 2020.
DOI
https://doi.org/10.2991/aebmr.k.200522.056How to use a DOI?
Keywords
leverage, bond yield, size, likuidity
Abstract
This paper examines the determinants of corporate leverage with the determining factors are bond yield, company size, and liquidity. The research samples include 22 companies that present a complete report with the determination of the sample through a purposive sampling method. The study uses the data panel using Eviews 8 program application. The analysis of data panels conducted first conducted the classical assumption test and the second through the model selection test is Chow test, Hausman test, and Lagrange multiplier test. The selected model is a random effect model. Regression model developed in three models total debt, long term debt and short term debt. The results showed that in total debt and short term debt model are a partially bond yield has no effects on leverage while the company size and liquidity significantly negative affects on leverage. In long term debt model is a partially bond yield has positive effect on leverage, size has no effect on leverage, and liquidity has positive effect on leverage. The results of this study can identified that leverage pattern in line with short term debt.
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This is an open access article distributed under the CC BY-NC license.

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TY  - CONF
AU  - Aang Munawar
PY  - 2020
DA  - 2020/05/25
TI  - Determinants of Corporates Leverage in Indonesia
BT  - Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)
PB  - Atlantis Press
SP  - 302
EP  - 306
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200522.056
DO  - https://doi.org/10.2991/aebmr.k.200522.056
ID  - Munawar2020
ER  -