THE INFLUENCE OFEQUITY OWNERSHIP TOWARDS LEVERAGE IN MANUFACTURING COMPANY LISTED AT THE INDOENSIAN STOCK EXCHANGE FOR 2005-2008

Nurazi, M.Ridwan and Kananlua, Paulus Suluk and Zoraya, Intan (2014) THE INFLUENCE OFEQUITY OWNERSHIP TOWARDS LEVERAGE IN MANUFACTURING COMPANY LISTED AT THE INDOENSIAN STOCK EXCHANGE FOR 2005-2008. In: Regional Development In An Era Of Global Innovation Economy, 26 November 2010, University Kebangsaan, Selangor Malaysia.

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Abstract

This research investigates lhe influence of ownership structure towards firms' leveragge in the magnitude of finns' growth opportunities (high growth and low growth opportunities). According to free cash flow Itypothesis, leverage is used by rnanager as an instrument to reduce the overinvestment. The leverage and the ownership sltacture can also be used as a control mechanism in afficting thefinancing decision. There are 24 manufacluring companies used as sample in this research. Those companies should have managerial ownership or institutional ownership during 2005-2008 and shauld be listed in the Indonesian Stoek Exchange during that time. In the methodolog,t, hypolhesis testing is used in this research. The dnta are analyzed through multiple regression analysis using SPSS (statistical package for socisl science) for Windows Yersian 15. The variables analyzed are managerial ownership, institutional ownership, size, fixed asset, R&D expenses, growth, interest tax credit and net operating loss towards debt or leverage. Simultaneously, using F-Test, there is a significant inJluence between independent variables with dependent variable (leverage) in high growth firms and law growth firms. Partiolly, the result shows that there is n.o causal or influence relationship between ownership structure that consists of managerial ownership and. institutionnl ownership towards leverage at the companies with high growth opportunities and the companies with low grawtlt opportunities. In high growth firms, only variables .fixed asset and size have signficant influence towardy letterage. In loy, growth.firms, variable,s growth, assets, and size have significant inJluence towards leverage. fixed

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Economy > Journal
Depositing User: 022 Gofar Ismail
Date Deposited: 04 Apr 2014 09:40
Last Modified: 04 Apr 2014 09:40
URI: http://repository.unib.ac.id/id/eprint/7219

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