Capital Structure, Ownership Structure, and Firm Size: It's Implication on Agency Cost (A Study in Indonesia Manufacturing Company)

摘要

This research examined the influence of capital structure, ownership structure, and firm size on agency costs in manufacturing companies listed on the Indonesia Stock Exchange. The capital structure is measured using Debt to Equity Ratio (DER) and Long Term Debt Equity Ratio (LTDER). The ownership structure is measured by institutional ownership and foreign ownership while company size is measured using Ln total assets. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2013-2018. The sampling technique used purposive sampling so that the number of samples in this study was 478. The method of data analysis used multiple linear regression. The results showed that DER had a positive and significant effect and LTDER had a negative and significant effect. Institutional ownership has positive and significant influence and foreign ownership has a positive and not significant effect. Firm size has a positive and significant effect.