The effect of corporate governance on the capital structure of non-financial companies in the period of 2011-2015

Abstract

The purpose of the research was to analyze the effect of Corporate Governance on the Company's Capital Structure. The variable used in this study were director size, outside commissioner, director ownership, institutional investor, audit quality, CEO tenure, size, growth, profitability, and intangible asset. This research used a quantitative approach with multiple linear regression analysis model. This research used samples taken from non-financial sector companies listed on the Indonesia Stock Exchange (BEI) in 2011-2015. The number of samples used in this research was 300 observations. It was found that the whole variables were significant at the level of 5% except for growth variable and intangible asset was significant at the level of 10%.

Corporate governance, capital structure, and firm performance: a panel VAR approach

“…Mwambuli ( 2019 ) investigates the role of CG, measured by a CGI, on CS of 32 non-financial listed firms in the East African region from 2006 to 2015 and finds a significant negative effect of CG on CS decisions. Most studies (Herlambang et al 2018 ; Chow et al 2018 ) use several CG variables as a proxy for CG, and the use of CGI as a measure of overall CG quality to assess their impact on CS is rare.…”

“…Prior studies related to CS in Mauritius have focused on the determinants of CS (Fowdar et al 2009 ; Odit and Gobardhun 2011 ; Gourdeale and Polodoo 2016 ; Omrawoo et al 2017 ), and so far, only one study has been conducted on the effect of CS on FP by Seetanah et al ( 2014 ), with limited sample size and no CG variables employed as potential determinants. Fifth, no study has been conducted on the impact of CG on CS and vice versa in Mauritius, and most studies (Herlambang et al 2018 ; Chow et al 2018 ) have used several CG variables as proxies for CG. The use of CGI as a measure of overall CG quality to assess its impact on CS is rare.…”

Corporate Governance Mechanism and Capital Structure Decision: Evidence from Indonesia

“…What corporate governance factors affect the company's capital structure has yet to be discovered. Several prior studies that looked at the relationship between corporate governance and capital structure, including those by Detthamrong et al (2017), Herlambang et al (2018), Siromi and Chandrapala (2017), and Sheikh (2019), have produced conflicting findings. As a result, more research into this topic is encouraged.…”

“…Detthamrong et al (2017) found that the board size variable had a positive but insignificant effect on leverage. Meanwhile, research conducted by Herlambang et al (2018) shows that the size of the commissioners' board significantly negatively affects leverage. On the other hand, Siromi and Chandrapala (2017) and Kumalasari et al (2019) found that board size has a negative but insignificant effect on leverage.…”

The Effect of Dividend Payout Ratio, Net Profit Margin, and Return on Assets on The Growth of Income (Case Study On Coal Mining Sector Companies Registered in Indonesia Stock Exchange Period 2017-2019)

“…The Dividend Payout Ratio policy within the company has an important impact on the many parties involved in it. Dividend policy is a policy that is carried out at a cost that is quite expensive, because companies must provide large amounts of funds for dividend payments (Farrukh, et.al., 2017;Herlambang, Murhadi, & Susanto, 2018). For shareholders or investors, dividends are the rate of return on their investment in the form of share ownership issued by other companies.…”