Experience, Board Size, and Firm Capital Structure
- DOI
- 10.2991/aprish-18.2019.29How to use a DOI?
- Keywords
- capital structure, corporate governance, executive experience, theory of trade-off
- Abstract
This empirical research aims to identify the effect of chief executive officer (CEO) experience and board size on a firm's capital structure in three-top industries - mining, agriculture, and consumer goods - companies within year 2010-2016. This paper uses tradeoff theory to investigate top managers' managerial experience and board size as elements of capital structure. The research result found that the experience from top manager positively influences to capital structure's book value, therefore the increasing of managers' experience years will be align with total and long term- debt of the company. Meanwhile, another independent variable, board size, negatively gives influence to the capital structure. Finally, our results are proved to be robust in both dependent variables, total market value and long-term debt proxies
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Muhamad Ronald Yusuf AU - Liyu Adhi Kasari Sulung PY - 2019/10 DA - 2019/10 TI - Experience, Board Size, and Firm Capital Structure BT - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018) PB - Atlantis Press SP - 232 EP - 238 SN - 2352-5398 UR - https://doi.org/10.2991/aprish-18.2019.29 DO - 10.2991/aprish-18.2019.29 ID - Yusuf2019/10 ER -