Factors Affecting The Cost of Debt in Companies Listed within Kompas 100

Septian, Muhamad; Panggabean, Rosinta Ria

doi:10.21512/bbr.v7i1.1439

Cited by 2 publications

(2 citation statements)

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“…Thel findings ofl the researchl conducted byl Darmansyahl (l2024) foundl that corporatel governance andl regulatory compliancel affect thel risk managementl of al lcompany. Thel previous research bySeptian and Panggabean (2016) found that GCG affects the Cost of Debt. Same as the research byPutra et al (2020) found that the GCG influence the credit performance The other researchl conducted bylUlfa and Challen (2020) concludedl that thel Leverage moderatesl the relationshipl between GCGl and companyl lvalue.…”

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confidence: 89%

The Integrity of soes Financial Statements: CAN GCG, DER, and KAP Reputation Affect it?

Sayekti,

Reschiwati

2024

RGSA

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Purpose: This study has three aims First, to analyze whether Good Corporate Governance (GCG) and Leverage Ratio (DER) affect the Financial Reports with integrity (IGFS) of SOE. Second, to examine whether reputation of the Public Accountant Firm (RPAF) can strengthen or weaken the influence of GCG and DER and the effect DER on IGFS. The third is to examine whether DER is intervening variable in the effect of GCG on IGFS. Theoretical framework: This study based on agency theory. Agency theory shows a conflict of interest and information asymmetry between management as an agent and the stakeholders as a principal. Financial reports is a result from an accounting process can be used as a communication tool between management and stakeholders regarding financial data from company activities Method/design/approach: The data in this study are 20 SOES listed JSX from 2017-2021. Data processing uses Eviews 13 because the kind of data is a data panel. Indicator of GCG are audit committee (AUDC), the proportion of independent commissioners (PIDC), the proportion of managerial share ownership (PPMO), and the proportion of institutional ownership (PINO). Leverage ratio using DER (Debt to Equity Ratio) and The Reputation of Public Accountant Firm use The Big Four and Non the Big Four. Hance Financial Reports with integrity (IGFS) as a dependent variable was measured by the market-to-book value ratio. Results and conclusion: The results concluded that indicator GCG only AUDC affect the Financial Report with integrity. The result also shows that AUDC and PPMO affected DER. Variable Reputation of Public Accountant Firm (RPAF) weakens the influence of AUDC on DER. The result of this study found that DER effect the IGFS but not as intervening variable. Research implications: This research implies that the policy of selecting audit committees in SOEs is very essential in maintaining the integrity of financial reporting and managing debt. Originality/value: The novelty in this research includes moderating and intervening variables in one research model.

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confidence: 89%

The Integrity of soes Financial Statements: CAN GCG, DER, and KAP Reputation Affect it?

Sayekti,

Reschiwati

2024

RGSA

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“…There are some points of view concerning the determination of the cost of debt. It can be defined by the financial expenses divided by the interest-bearing debts (Septian & Panggabean, 2016). On the other hand, the cost of debt is the interest rate including the tax-saving -after-tax cost of debt.…”

Section: Theoretical Basismentioning

confidence: 99%

The impact of financing policy on the cost of debt

Konieva

2021

Investment Management and Financial Innovations

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The cost of debt is a key element to define the amount of the regular interest payments of a company and its business value. It is used for indicators that warn of the economic crisis, which is relevant for the countries where most companies are financially dependent on liabilities. The formalized criteria for the types of financing policy, improved procedure for the cost of debt calculation make it possible to reveal policy with the capital structure that minimizes the cost of debt.The study is based on Ukrainian food processing companies for the period 2013–2020. The studied database was distributed by the types of financing policies: 22% of the cases have a conservative policy, 15% – moderate, 26% – aggressive, 37% – super-aggressive. The results show that the highest weighted cost of debt (24.1%) belongs to the conservative policy, which replaces negative equity by the expensive long-term debts, as well as super-aggressive policy (20.8%) with trade payable that is near half of the capital, and long days payable outstanding. A company can reduce the cost of debt relying on non-interest-bearing liabilities and trade payable if its days payable outstanding are kept at the industrial level or below. Moderate and conservative financing policies, which are based on equity and avoid debts, provide the lowest weighted cost of debt: 2.1% and 1.2%.Thus, choosing the desired type of financing policy for the company, it is possible to form a capital structure that will reduce the cost of debt.

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Factors Affecting The Cost of Debt in Companies Listed within Kompas 100

Cited by 2 publications

References 8 publications

The Integrity of soes Financial Statements: CAN GCG, DER, and KAP Reputation Affect it?

The Integrity of soes Financial Statements: CAN GCG, DER, and KAP Reputation Affect it?

The impact of financing policy on the cost of debt

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