THE IMPACT OF MANAGERIAL OWNERSHIP, SIZE, AND GROWTH RATE ON CAPITAL STRUCTURE
DOI:
https://doi.org/10.5281/zenodo.3840820Keywords:
Capital structure, Debt to equity ratio, Panel data, IndonesiaAbstract
This paper examines the influence of managerial ownership, size, and growth rate on capital structure of companies which were belonged to Consumer Goods Industry and Miscellaneous Industry listed inIndonesia Stock Exchange (IDX) on the year period 2009 -2014. Panel data regression analysis is used to investigate the influence of independent variables on firm’s capital structure. The empirical results demonstrate the capital structure (proxied by the total debt ratio) of the companies is positively determined by their size (proxied by the total revenue). The results of the analysis also showed that capital structure is also negatively determined by managerial ownership (measured by comparing themanagerial share ownership with total of circulated shares). The finding also show that leveragenegatively determined by their growth rate (proxied by the asset growth rate). These findings are consistent with the previous literature.References
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Robert, A., 1997. Buku pintar pasar modal Indonesia.
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59-92.
Bevan, A. and J. Danbolt, 2002. Capital structure and its determinants in the United Kingdom: A
decompositional analysis. Applied Financial
Economics, 12(3): 159–170.
Berger, P G, Ofek, E & Yermack, D L, 1997. Managerial
Entrenchment and Capital Structure Decisions. The
Journal of Finance, 52(4): pp1411-1438. Bunkanwanicha, P, Gupta, J & Rokhim, R, 2008. Debt and
Entrenchment: Evidence from Thailand and Indonesia. European Journal of Operational Research, 185(3), pp1578-1595.
Bouallegui, I., 2006. Capital structure determinants and the new high-tech firms: The critical distinction between fixed and random effects through a static panel data investigation. MPRA Paper No. 22477. Germany:
University Library of Munich.
Chen, J.J., 2003. Determinants of capital structure of Chinese-listed companies. Journal of Business Research, 57(12): 1341– 1351.
Chittenden, F., G. Hall and P. Hutchinson, 1996. Small firm growth, access to capital markets and financial structure: Review of issues and an empirical investigation. Small Business Economics, 8(1): 59-
67.
Deesomsak, R., K. Paudyal and G. Pescetto, 2004. The determinants of capital structure: Evidence from the Asia pacific region. Journal of Multinational
Financial Management, 14(4-5): 387-405.
Denis, D K & McConnell, J J, 2003. International Corporate Governance. The Journal of Financial and Quantitative Analysis, 38(1): 1-36.
Gaud, P., E. Jani, M. Hoesli and A. Bender, 2005. Capital structure of Swiss companies: An empirical analysis. European Financial Management, 11(1): 51–69.
Huang, G., & Song, F. M., 2006. The determinants of
capital structure: evidence from China. China
Economic Review, 17(1): 14-36
Jensen, M C, 1986. Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers.
American Economic Review, 76(2): pp323-329.
Jensen, M. C., & Meckling, W. H., 1976. Theory of the firm: managerial behavior, agency costs and
ownership structure. Journal of Financial Economics,
3(4): 305-360.
Michaelas, N., F. Chittenden and P. Poutziouris, 1999.
Financial policy and capital structure choice in UK SMEs: Empirical evidence from company panel data.
Small Business Economics, 12(2): 113-130.
Pindado, J., & La Torre, D. C., 2011. Capital structure: new evidence from the ownership structure. International
Review of Finance, 11(2): 213-226.
Rasyid, A., 2015. Effects of managerial ownership, capital structure, managerial ownership and company’s growth towards firm value. International Journal of Business and Management Invention, 4(4): 25-31.
Robert, A., 1997. Buku pintar pasar modal Indonesia.
Jakarta: Media Soft Indonesia.
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Published
2018-08-08
How to Cite
Munandar, A. (2018). THE IMPACT OF MANAGERIAL OWNERSHIP, SIZE, AND GROWTH RATE ON CAPITAL STRUCTURE. Jurnal Riset Terapan Akuntansi, 1(2), 84–88. https://doi.org/10.5281/zenodo.3840820
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