Corporate Governance and Ownership Structure: It's Implication on Agency Cost (A Study in Indonesia Manufacturing Company)

摘要

This study examines how Good Corporate Governance and Ownership Structure are associated with the Agency Cost. Agency Cost is measured by the efficiency ratio or Asset Utilization Ratio. While Good Corporate Governance is measured with the size of board commissioner and independent commissioner. Ownership Structure uses managerial ownership and institutional ownership as its proxy. The sample of this study is 118 manufacturing company listed on the Indonesia Stock Exchange (IDX) from 2011-2016. The result indicates that institutional ownership has positive and significant effect on agency cost. The finding of this study do not show any relationship among board of commissioners, independent commission and managerial ownership toward agency cost.