Corporate governance attribute, blockholder ownership and accounting conservatism: Which aspects reduce the cost of equity?

Solikhah, Badingatus; Jariyah, Jariyah

doi:10.5267/j.ac.2020.8.024

Cited by 3 publications

(3 citation statements)

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“…Liquidity negatively affects firm leverage because the higher the liquidity, the smaller the need for external funds to support additional operations. Several previous findings stated the same thing, even though the studies were conducted in different sectors and countries such as (Solikhah & Jariyah, 2020) (Kuč & Kaličanin, 2021) (Bandyopadhyay & Barua, 2016). However, it is also stated that liquidity does not affect the firm's debt policy because leverage is used more for long-term investment funding (Santosa, 2020a) Sales Growth.…”

Section: Discussionmentioning

confidence: 87%

“…Majority shareholders, as concentrated or institutional ownership, can reduce agency conflict because they can control and direct managers to make debt and dividend policies that favor the interests of institutional shareholders, especially in stateowned enterprises (Phung & Mishra, 2016;Albart et al, 2020a). In other words, the greater the percentage of shares owned by institutional investors causes monitoring efforts to be more effective because they can control opportunistic behavior carried out by managers (Solikhah & Jariyah, 2020); Xuan Anh et al, 2018). This finding can be seen in the analysis results above, showing that majority ownership has a significant effect on property sector firms at IDX and as a speed adjustment to balance the debt ratio in running the firms (Öztekin & Flannery, 2012).…”

Section: Discussionmentioning

confidence: 99%

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The Moderating Role Of Firm Size On Relationship Between Majority Ownership And Debt Policy Of Property Sector

Santosa

Budiantoro

Zuzryn

2022

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This study aims to understand well the effect of majority ownership and firm size on financial fundamentals as controlling the debt policy of the property sector in Indonesia. The data panel model was built using data from firms listed in the property sector of the Indonesia Stock Exchange. Data is extracted from audited quarterly financial reports from 2014-2019. The results show that majority ownership negatively influences debt policy. In general, majority ownership negatively affects the capital structure in the short and long term because management is more prudent. However, sales growth and firm size insignificantly affect debt policy. Moreover, the moderate effect of firm size on the relationship between majority ownership and debt policy was strengthened. The controlling fundamentals, namely liquidity and profitability, negatively affect leverage. However, price to book value positively affects leverage. Our main implication is that majority ownership and firm size with firm-specific rather than country facts explain the differences in debt policy in the property sector.

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Section: Discussionmentioning

confidence: 87%

Section: Discussionmentioning

confidence: 99%

The Moderating Role Of Firm Size On Relationship Between Majority Ownership And Debt Policy Of Property Sector

Santosa

Budiantoro

Zuzryn

2022

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“…Penelitian ini tidak sejalan dengan Kurak & Garcia-Cestona, (2017) yang berpengaruh negatif dan penelitian Solikhah & Jariyah, (2020) yang berpengaruh positif antara kepemilikan blok dengan biaya modal ekuitas. Tidak sejalan pula dengan penelitian Carpenter & Jones, (2015) yang berpengaruh positif ataupun P. Nguyen, (2020) atas pengaruh negatif antara keberagaman gender dan biya modal ekuitas.…”

Section: H3: Tata Kelola Perusahaan (Kepemilikan Blok Ukuran Dewan Ke...unclassified

Praktik akuntansi lingkungan dan biaya modal pada perusahaan di Indonesia

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Aling

2022

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Observe the development of social responsibility, especially in the field of environment, and the performance of corporate governance in Indonesia are important factors in the company's operations. A number of companies do not participate in this disclosure activity, which will result in new costs that will be borne by the company. The high and low cost of capital owned by a company will show how much risk the company will accept in order to obtain funding for the company's sustainability. This research was conducted to produce an analysis of the effect of the level of environmental accounting practices on the cost of equity capital or the cost of debt capital and the effect of corporate governance performance on the cost of equity capital or the cost of debt capital. This study uses data on financial statements and sustainability reports of companies listed on the Indonesia Stock Exchange from 2016 to 2020. The test results show that financial environmental accounting practices and corporate governance performance consist of block ownership, board size, gender diversity, and board tenure. has a significant effect on the cost of equity capital. on the cost of debt capital, only the board size variable has a significant effect. This research encourages companies to be able to participate in the disclosure of environmental performance and corporate governance.

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