PENGARUII CORPORATE GOWRNANCE TERIIADAP STRUKTUR MODAL DAN KINERJA PERUSAHAAI\: STUDI EMPIRIS PADA FAMILY BASINESS GROUP YANG TERDAFTAR  DI BURSA EFEK JAKARTA

The aim of this research is to examine the effect of corporate governancet's internal mechanism that ls institutionii o*r"rriip, oi both firm performance and firm capital structure. To the extent, the moderating effect of managerial ownership on the relationship between institutional ownership,-fir* performance and capital structure wilt be examined as well.The sample of this research is drar,vn fro* companies within the big six family,owned business in Indonesia, which are listed at The Jakarta Stock Exchange fro* 1998 until 2005. Using the Moderated Regression Analysis (MRA),. the result shows that both institutional and managerial ownership fail to demonstrate the direct and moderated effect on both performance and capital structure. These findings suggest that the froil of economic, social and political circumstances create the "short term-focused" toward investment return. Moreover, the slow achiqement of collusion, corruption, and nepotism (KI< I) eradication has resulted in sudden-withdrawal of investor's investment. Hence, the internal control mechanism of corporate governance which is long-term focused and associated with KKI{ eradi cation cannot b e su cc es sfully impl em ent ed.Keywords: Institutional ownership, managerial ownership, performance,capital structure

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Impact of Capital Structure on Profitability:An empirical analysis of listed firms in India

Asian Journal of Managerial Science ◽

10.51983/ajms-2018.7.2.1310 ◽

2018 ◽

Vol 7 (2) ◽

pp. 1-6

Author(s):

Atif Ghayas ◽

Javaid Akhter

Keyword(s):

Capital Structure ◽

Stock Exchange ◽

Short Term ◽

Return On Equity ◽

Listed Firms ◽

Relationship Capital ◽

The Impact ◽

The Relationship ◽

Positive Effect

This study aims to empirically examine and analyze the impact of capital structure decision on the firm’s profitability by using a sample of 35 Indian pharmaceutical companies listed on Bombay Stock Exchange (BSE) during the period of 5 years from 2012 to 2016. Regression Analysis is used to measure the extent and nature of the relationship. Capital structure variables used in the study are ratio of long-term debt to total assets (LDA), ratio of short-term debt to total assets (SDA) and ratio of Total debt to total assets (DA) while profitability has been measure by Return on Equity (ROE). Firms Size (SIZE)and Salesgrowth(GROW) are also used as control variables. Results reveal a positive effect of SDA and DA on ROE, while a weak-to-no effect was found of LDA on ROE.

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Impact of corporate governance on capital structure: mediating role of cost of capital

Journal of Economic and Administrative Sciences ◽

10.1108/jeas-09-2020-0157 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Aisha Javaid ◽

Mian Sajid Nazir ◽

Kaneez Fatima

Keyword(s):

Corporate Governance ◽

Capital Structure ◽

Cost Of Capital ◽

Stock Exchange ◽

Institutional Ownership ◽

Managerial Ownership ◽

Content Type ◽

Mediating Role ◽

The Relationship

PurposeThis paper contributes to the existing literature by extending the empirical work on the relationship between corporate governance and capital structure by analyzing the mediating role of cost of capital in the non-financial firms listed on the Pakistan Stock Exchange (PSX).Design/methodology/approachThe sample for this study includes non-financial firms listed on the Pakistan Stock Exchange (formerly Karachi Stock Exchange) for the period of 2004–2016. Based on 1800 firm-year observations, three approaches of panel data analysis are applied for the step-wise analysis of the underlying study. Firstly, Pooled OLS is applied. Secondly, fixed and random effect panel regression followed by the Hausman test to check the unobservable individual heterogeneity of the data. Hausman test indicates that the fixed-effects model is the most appropriate model for the sample panel data.FindingsThe study's findings are that board size, board composition, CEO/Chair duality, institutional ownership and managerial ownership have statistically significant direct effect on the firm's financing decisions. However, CEO/Chair duality, institutional ownership and managerial ownership have significant indirect effect on firm's capital structure decisions. The interesting finding of the paper is on the evidence of mediating role of cost of capital in the nexus of corporate governance and capital structure. Moreover, some conventional determinants of capital structure, including the firm's size, asset structure of the firm, profitability, business risk and growth, are found as determinants of capital structure decisions of the firms.Research limitations/implicationsThere are a few limitations to our study which could be addressed by upcoming research. We did not include all the four mechanisms of corporate governance including board structure, audit structure, compensation structure and ownership structure. However, we used only five important attributes including board size, board composition and CEO/Chair duality form board structure, managerial ownership and institutional ownership form ownership structure of corporate governance as our explanatory variables to examine their impact on the capital structure choices of the firms. Future studies may fill this research gap by involving some other attributes of corporate governance and analyzing their effectiveness and impact on value relevant capital structure decisions. Further, due to limited time and resources, we only tested the mediating role of cost of capital, hence, future researchers can analyze the mediating and moderating roles of different variables which may influence the relationship between corporate governance and capital structure choices of the firms.Practical implicationsThe study has many valuable guidelines and practical implications for the financial managers of the corporations. Our results will facilitate the policymakers in setting their corporate governance policies and practices and making the value relevant capital structure decisions in compliance with the implications of corporate governance mechanism. In addition, our study provides the empirical evidence in accordance with the argument that good governance practices, particularly the voluntary disclosures by the firm may reduce the information asymmetry which, ultimately, reduces the agency cost and the cost of capital for the firm. However, while deciding the financial policy of the corporations, managers can use our findings in order to assess the effectiveness of corporate governance practices employed by the firm in achieving the optimal capital structure at which the weighted average cost of capital is at its minimum level.Originality/valueThis paper contributes to the literature by investigating the mediating role of the cost of capital in the relationship between corporate governance and capital structure decisions of the firms. This paper provides empirical evidence that corporate governance indirectly affects capital structure decisions through the mediating role of cost of capital.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP PROFITABILITAS DENGAN PENGUNGKAPAN TANGGUNG JAWAB SOSIAL PERUSAHAAN SEBAGAI VARIABEL MEDIATING PADA PERUSAHAAN MANUFAKTUR

Jurnal Ekonomi dan Bisnis Airlangga ◽

10.20473/jeba.v30i12020.49-64 ◽

2020 ◽

Vol 30 (1) ◽

pp. 49

Author(s):

RIE RIENITA PAALLO ◽

ARDIANTO ARDIANTO

Keyword(s):

Corporate Governance ◽

Sampling Method ◽

Stock Exchange ◽

Institutional Ownership ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Good Corporate Governance ◽

Internal Mechanism ◽

Csr Disclosure ◽

The Relationship

Introduction: This study examines the effect of good corporate governance on the profitability, either directly or through CSR as an mediating variable in manufacturing companies listed in Indonesia Stock Exchange in the period of 2008-2012.Methods: Sampling method used is purposive sampling by using a balanced panel of data to obtain a sample of 135 companies. Good corporate governance as independent variables were measured usingfour internal mechanism that institutional ownership, managerialownership, board of directors, and audit committees.he research hypotheses were tested using path analysis model.Results: This study found that only institutional ownership had direct and significant impact on profitability. CSR disclosure only proven to be an mediating variable in the relationship between managerial ownership on the profitability of the company. Conclusion and suggestion: Companies should pay attention in the form of social responsibility to the environment and society.

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An Empirical Study on Capital Structure and Corporate Performance of Chinese Listed Companies

Journal of Commerce and Accounting Research ◽

10.21863/jcar/2016.5.3.032 ◽

2016 ◽

Vol 5 (3) ◽

Author(s):

Fahd Al-Duais

Keyword(s):

Capital Structure ◽

Corporate Performance ◽

Positive Impact ◽

Stock Exchange ◽

Listed Companies ◽

Short Term ◽

Chinese Listed Companies ◽

The Impact ◽

The Relationship

The relationship between level of debt and the companys performance remains an important unsolved issue in the field of financing. It is very important to know how Chinas listed companies manage their capital towards business growth. This paper investigates the impact of the capital structure on corporate performance of a sample of 711 listed companies on the Shenzhen Stock Exchange in China in 2014. The results indicates that there is a positive relation between financial leverage and corporate performance as well as there is a positive impact that the mixture of long-term debt and short-term debt (using total debt). This would help decision maker in the companies to finance firms operation in the both periods. On the other hand, the short term debt has a negative relation and impact on corporate performance compared to the changing in firm size which cannot change in the profitability of firms.

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Investigating the Relationship Between Ownership Structure and Investment Efficiency in Emerging Markets: Evidence From the Egyptian Stock Market

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v8i4.13630 ◽

2018 ◽

Vol 8 (4) ◽

pp. 1

Author(s):

Ahmed Sayed Rashed ◽

Ebitihj Mostafa Abd ◽

Esraa Fathi Mohamed Ismail ◽

Doaa Mohamed Abd El Samea

Keyword(s):

Ownership Structure ◽

Stock Exchange ◽

Panel Data Analysis ◽

Negative Relationship ◽

Institutional Ownership ◽

Managerial Ownership ◽

Investment Efficiency ◽

Outside Director ◽

Director Ownership ◽

The Relationship

This paper aims to examine the relationship between Ownership Structure Mechanisms (Managerial Ownership, Institutional Ownership, Block holder Ownership and Outside Director Ownership) and Investment Efficiency by using panel data analysis. To investigate this relationship used the multiple regression models. Findings of investigation of 35 firms listed on the Egyptian Stock Exchange in the period 2006 to 2015 by balanced Panel model representative. Results indicated that Managerial Ownership isn’t related with investment efficiency. In contract, institutional ownership, block holder ownership and outside director ownership have a negative relationship with investment efficiency. In addition, the researcher found that control variables (Firm size, Debt ratio, Tobin’s Q) not related to investment efficiency. These findings imply that the Majority of Egyptians firms relies on institutional without individual ownership and then reduces much of possible from agency problems and decreasing information asymmetry and facilitating the monitoring of investment decisions.

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Capital Structure and Firms’ Performance: Evidence from Vietnam’s Stock Exchange

International Journal of Economics and Finance ◽

10.5539/ijef.v7n12p1 ◽

2015 ◽

Vol 7 (12) ◽

pp. 1 ◽

Cited By ~ 3

Author(s):

Tristan Nguyen ◽

Huy-Cuong Nguyen

Keyword(s):

Capital Structure ◽

Stock Exchange ◽

Debt Maturity ◽

Management Process ◽

Short Term ◽

Fixed Assets ◽

Two Factors ◽

The Impact ◽

Very High

Our paper examines what impact capital structure has on firms’ performance in selected firms listed on HCMC Stock Exchange. The data is collected from 147 listed companies during the period from 2006 to 2014. The study not only checks the impact the level of leverage has on firms’ performance, which is found to be negative in this study, but it also uses the short-term and long-term debt ratios to see the effect of debt maturity. However, there is no difference whether it is short-term or long-term. Tangibility is found to be negative with a very high proportion on average. With the suggestion that companies might invest too much in fixed assets and there is a lack of efficiency, this could be the alert for firms to improve their management process. Size and growth are found to be positive, since larger firms have lower costs of bankruptcy and higher growth rates associate with higher performance. Moreover, the study also adds the effects of industry and macroeconomics, and the result shows a correlation between the two factors and firms’ performance.

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Statistical Analysis of Causality between Capital Structure and Firm Profitability: Evidence from Bosnia and Herzegovina

Croatian Review of Economic Business and Social Statistics ◽

10.1515/crebss-2016-0001 ◽

2015 ◽

Vol 1 (1-2) ◽

pp. 1-11

Author(s):

Emina Resić ◽

Jasmina Mangafić ◽

Tunjo Perić

Keyword(s):

Capital Structure ◽

Bosnia And Herzegovina ◽

Canonical Correlation ◽

Debt Structure ◽

Short Term ◽

The Relationship ◽

Structure Choice ◽

Capital Structure Choice ◽

The Capital Structure

Abstract This research is designed to examine the relationship between the capital structure and profitability of non-financial firms in Bosnia and Herzegovina during the ten years period, from 2003-2012. The goal is to prove the existence of the relationship between the firm’s capital structure choice and its profitability. The analysis is extended by including the debt structure and differentiating between the types of debt such as the long-term and the short-term ones. Canonical correlation and multiple regression analysis are used. The results of the multivariate canonical correlation analysis provide support to a hypothesis that the capital structure and profitability have statistically significant relationships. Furthermore, the findings provide support that firms develop different patterns of profitability depending on the capital structure choice. We found that an increasing proportion of short-term debt and long-term debt in the overall liability of the firm reduces its profitability.

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The Effect of Ownership Structure, Profitability, Firm Size and Tangibility on Capital Structure

Management Analysis Journal ◽

10.15294/maj.v7i4.23478 ◽

2018 ◽

Vol 7 (4) ◽

pp. 494-505

Author(s):

Tika Iswarini ◽

Anindya Ardiansari

Keyword(s):

Capital Structure ◽

Firm Size ◽

Ownership Structure ◽

Financial Management ◽

Stock Exchange ◽

Institutional Ownership ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Company Value ◽

Optimal Value

The important decision faced by financial management which relates to the continuity of company operations is funding decision which is capital structure. Capital structure achieves optimal value if the composition of debt and capital are able to increase company value. The purpose of this research is to examine the effect of ownership structure, profitability, firm size, and tangibility against capital structure (research on manufacturing companies listed on Indonesia Stock Exchange period 2012-2016). The population in this research were all manufacturing companies listed on the Indonesia Stock Exchange 2012-2016. This research used purposive sampling method with certain criteria to determine the sample. The sample used was 38 companies with the research period 2012-2016 at manufacturing companies listed on the Indonesia Stock Exchange. Multiple regression analysis using Eviews 8 was used to analyze the data. The result of multiple linear regression test showed that there were three independent variables that affect capital structure they were managerial ownership, firm size and tangibility. Whereas institutional ownership and profitability did not affect the capital structure of manufacturing companies in 2012-2016. The conclusion of this research is managerial ownership, firm size and tangibility have positive and significant effect on capital structure, while institutional ownership and profitability have negative and insignificant effect on capital structure.

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PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP STRUKTUR MODAL PERUSAHAAN GO PUBLIC YANG TERCATAT DI BURSA EFEK INDONESIA

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v4i1.2330 ◽

2013 ◽

Vol 4 (1) ◽

Author(s):

ERIKA SEPTIANTY

Keyword(s):

Corporate Governance ◽

Capital Structure ◽

Stock Exchange ◽

Institutional Ownership ◽

Managerial Ownership ◽

Executive Directors ◽

Control Variables ◽

Good Corporate Governance ◽

Equity Ratio ◽

A Company

Good Corporate Governance (GCG) is increasingly popular. but has a very important meaning in the system of corporate governance and managerial aspects, and investing in a good organization profit organization and this research uses its capital structure as measured by the debt-equity ratio as the dependent variable, while institutional ownership and managerial ownership as well as company size and profitability as the independent variable and three control variables. Control variables are variables that are controlled or held constant so that the effect o outside factors. Control variables used in the study include the Board of Directors, non-executive directors, and chair duality. Research is underway to find empirical evidence of the influence of the implementation of Good Corporate governanve the company's capital structure. The population used in this study is a company listed on the Indonesia Stock Exchange, while the sample is a company in the implementation of corporate governance ranking by IICG during the period 2005-2011. From the results of testing the hypothesis, suggesting that the effect of corporate governance is proxied by managerial ownership, institutional ownership and firm size has no influence not have any impact on capital structure. The research proves that the variables have an influence on the profitability of capital structure. In general, the results of this study indicate that companies listed on the Stock Exchange has not fully considering the use of corporate governance in determining capital structure. Keyword: Managerial Ownership, Institutional Ownership, Profitability, Firm Size, Good Corporate Governance, Capital Structure. ABSTRAK Good Corporate Governance (GCG) semakin populer. namun mempunyai arti yang sangat penting dalam sistem tata kelola perusahaan maupun dalam aspek manajerial dan investasi dalam suatu organisasi baik organisasi laba dan nonlaba.Penelitian ini menggunakan struktur modal yang diukur dengan debt-equity ratio sebagai variabel dependen, sedangkan kepemilikan institusional dan kepemilikan manajerial, serta ukuran perusahaan dan profitabilitas sebagai variabel independen dan tiga variabel kontrol. Variabel kontrol merupakan variabel yang dikendalikan atau dibuat konstan sehingga pengaruh variabel independen terhadap variabel dependen tidak dipengaruhi oleh faktor luar yang tidak diteliti. Variabel kontrol yang digunakan dalam penelitian antara lain Dewan Direksi, non-executive directors, dan chair duality. Penelitian ini dilakukan untuk menemukan bukti empris adanya pengaruh penerapan Good Corporate governanve terhadap struktur modal perusahaan. Populasi yang digunakan dalam penelitian ini adalah perusahaan yang terdaftar di Bursa Efek Indonesia, sedangkan sampel adalah perusahaan yang masuk dalam pemeringkatan penerapan corporate governance yang dilakukan oleh IICG selama periode 2005-2011. Dari hasil pengujian hipotesis, menunjukkan bahwa pengaruh corporate governance yang diproksikan oleh kepemilikan manajerial, kepemilikan institusional dan ukuran perusahaan tidak mempunyai pengaruh terhadap struktur modal. Hasil penelitian membuktikan bahwa variabel profitabilitas mempunyai pengaruh terhadap struktur modal.Secara umum hasil penelitian ini menunjukkan bahwa perusahaan yang terdaftar di BEI belum sepenuhnya memperhatikan penggunaan corporate governance dalam menentukan kebijakan struktur modalnya, kata kunci: good corporate governanve, kepemilikan manajerial, kepemilikan institusional, profitabilitas, ukuran perusahaan, struktur modal

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PENGARUH PERENCANAAN PAJAK, STRUKTUR MODAL DAN KEPEMILIKAN MANAJERIAL TERHADAP NILAI PERUSAHAAN DENGAN TRANSPARANSI PERUSAHAAN SEBAGAI VARIABEL MODERASI

JURNAL AKUNTANSI BARELANG ◽

10.33884/jab.v6i1.4660 ◽

2022 ◽

Vol 6 (1) ◽

pp. 1-12

Author(s):

Deaelma Sari ◽

Wiwit Irawati

Keyword(s):

Data Analysis ◽

Capital Structure ◽

Firm Value ◽

Stock Exchange ◽

Sampling Technique ◽

Tax Planning ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Corporate Transparency ◽

The Relationship

This study aims to identify and prove empirically the effect of Tax Planning, Capital Structure and Managerial Ownership on Firm Value with Corporate Transparency as a moderating variable. This type of research is quantitative approach research with explanatory research and associative methods. Samples were taken using the purposive sampling technique using Eviews 9 software for data analysis. The sample consists of 60 data from 12 property and real estate subsector manufacturing companies listed on the Indonesia Stock Exchange in 2016-2020. The results show that Tax Planning, Capital Structure and Managerial Ownership simultaneously affect the value of the company which is moderated by corporate transparency, tax planning has no effect on firm value, the capital structure does not affect firm value, managerial ownership does not affect firm value, and corporate transparency does not. effect on firm value, corporate transparency is unable to moderate the relationship between tax planning and firm value, corporate transparency is unable to moderate the relationship between capital structure and firm value, and corporate transparency is unable to moderate the relationship between managerial ownership and firm value.

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