Capital Structure, Corporate Governance, and Agency Costs

Elsa Imelda, Dewi Ayu Patricia

Abstract

The purpose of this empirical research is to examine the impact of capital structure and good corporate governance on agency cost. This research used 104 manufacturing companies which were listed on the Indonesia Stock Exchange from 2014-2016 as sample. This research used fixed effect models from Eviews 9 as the program. The statistical method used to test the hypothesis is multiple linear regression. General administrative expense ratio is used as a proxy to measure agency cost. Capital structure is measured by debt to asset ratio and long term debt to asset ratio. Corporate governance mechanism is measured by managerial ownership and board of director. The results showed that debt to asset ratio has a significant effect on agency cost. The long term debt to asset ratio, managerial ownership, and board size do not have a significant effect on agency cost.

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Paper Citation


in Harvard Style

Imelda E. and Patricia D. (2018). Capital Structure, Corporate Governance, and Agency Costs.In Proceedings of the 7th International Conference on Entrepreneurship and Business Management - ICEBM Untar, ISBN 978-989-758-363-6, pages 203-207. DOI: 10.5220/0008490602030207


in Bibtex Style

@conference{icebm untar18,
author={Elsa Imelda and Dewi Ayu Patricia},
title={Capital Structure, Corporate Governance, and Agency Costs},
booktitle={Proceedings of the 7th International Conference on Entrepreneurship and Business Management - ICEBM Untar,},
year={2018},
pages={203-207},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008490602030207},
isbn={978-989-758-363-6},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Entrepreneurship and Business Management - ICEBM Untar,
TI - Capital Structure, Corporate Governance, and Agency Costs
SN - 978-989-758-363-6
AU - Imelda E.
AU - Patricia D.
PY - 2018
SP - 203
EP - 207
DO - 10.5220/0008490602030207