Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia

Ekadjaja, Margarita and Ekadjaja, Agustin and Siswanto, Halim Putera Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia. Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia.

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Abstract

A firm‘s decision to use leverage becomes a controversial policy between the managers and shareholders. The aim of this study was to reveal the determinants that affect a firm’s decision to use leverage. Data was collected from financial reports of manufacturing firms in Indonesia during the years of 2010-2017. Based on data analysis by using Eviews 6.0, it can be revealed that institutional ownership, foreign ownership, and firm size positively and significantly affected a firm’s decision to use leverage. Meanwhile, asset structure had negative and significant effect, and managerial ownership had positive yet insignificant effect on such decision. Keywords: managerial ownership, institutional ownership, foreign ownership, firm size, asset structure

Item Type: Article
Subjects: Penelitian > Fakultas Ekonomi
Divisions: Fakultas Ekonomi > Manajemen
Depositing User: Puskom untar untar
Date Deposited: 16 Nov 2020 07:49
Last Modified: 16 Nov 2020 07:49
URI: http://repository.untar.ac.id/id/eprint/13272

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