Is Age and Power of Top Management Team Important in Leverage Decision?

Nilmawati, Wisnu Untoro, Bambang Hadinugroho, Atmaji

2019

Abstract

This study aims to examine the influence of the age of the top management team on corporate leverage, by including power as a moderating variable. The study was conducted using panel data with 283 samples of non-financial companies listed on the Indonesia Stock Exchange in the period 2010-2017. Testing is done using moderated regression analysis (MRA). Leverage is measured using the book and market leverage, while the age of the top management team is measured by the average age of the team, and power is measured using average share ownership by a team divided by the number of shares outstanding. This research found that when the top management team has power in the company, the older top management team will be more likely to choose lower leverage decisions. This result is consistent with the Upper Echelon Theory which states that the observable characteristics of the top management team can influence the company's strategic decisions.

Paper Citation

in Harvard Style

Nilmawati., Untoro W., Hadinugroho B. and Atmaji. (2019). Is Age and Power of Top Management Team Important in Leverage Decision?.In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM, ISBN 978-989-758-471-8, pages 424-431. DOI: 10.5220/0009960304240431

in Bibtex Style

@conference{icbeem19,
author={Nilmawati and Wisnu Untoro and Bambang Hadinugroho and Atmaji},
title={Is Age and Power of Top Management Team Important in Leverage Decision?},
booktitle={Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,},
year={2019},
pages={424-431},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009960304240431},
isbn={978-989-758-471-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,
TI - Is Age and Power of Top Management Team Important in Leverage Decision?
SN - 978-989-758-471-8
AU - Nilmawati.
AU - Untoro W.
AU - Hadinugroho B.
AU - Atmaji.
PY - 2019
SP - 424
EP - 431
DO - 10.5220/0009960304240431