Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia

DOI

10.2991/aebmr.k.200626.051How to use a DOI?

Keywords

managerial ownership, institutional ownership, foreign ownership, firm size, asset structure

Abstract

A firm‘s decision to use leverage becomes a controversial policy between the managers and shareholders. The aim of this study was to reveal the determinants that affect a firm’s decision to use leverage. Data was collected from financial reports of manufacturing firms in Indonesia during the years of 2010-2017. Based on data analysis by using Eviews 6.0, it can be revealed that institutional ownership, foreign ownership, and firm size positively and significantly affected a firm’s decision to use leverage. Meanwhile, asset structure had negative and significant effect, and managerial ownership had positive yet insignificant effect on such decision.

Copyright

© 2020, 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/).

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TY  - CONF
AU  - Margarita Ekadjaja
AU  - Agustin Ekadjaja
AU  - Halim Putera Siswanto
PY  - 2020
DA  - 2020/06/29
TI  - Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia
BT  - Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR
PB  - Atlantis Press
SP  - 296
EP  - 300
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200626.051
DO  - 10.2991/aebmr.k.200626.051
ID  - Ekadjaja2020
ER  -