The effect of good corporate governance on capital structure in financial sector firms listed on the Indonesia stock exchange over the period of 2012-2016

摘要

The purpose of this study is to examine the effect of board size, managerial ownership, institutional investors, profitability, size, and growth as the independent variables on the capital structure of all non-financial companies listed on the Indonesia Stock Exchange. This study used a quantitative perspective with linear regression and panel data models with a number of research observations of 1,625, consisting of 325 companies listed on the Indonesia Stock Exchange over the period of 2012-2016. The results of the study prove that managerial ownership, profitability, and size had a significant negative effect on capital structure. Whereas growth had a significant positive effect on the capital structure and board size and institutional investors had no significant effect on capital structure (debt ratio).