Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis
Capital structure is a mix of debts and equities used by a company to finance its investment. Debt offers benefit of tax shield from interest expenses that can be deducted in calculating company income tax. Unfortunately, company can not use debts in unlimited amount because it will lead to risk of...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Prasetiya Mulya Publishing
2013-04-01
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| Series: | International Research Journal of Business Studies |
| Subjects: | |
| Online Access: | http://www.irjbs.com/index.php/jurnalirjbs/article/view/92/92 |
| _version_ | 1811275387235205120 |
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| author | Arief Tri Hardiyanto Noer Azam Achsani Roy Sembel Nur Ahmad Maulana |
| author_facet | Arief Tri Hardiyanto Noer Azam Achsani Roy Sembel Nur Ahmad Maulana |
| author_sort | Arief Tri Hardiyanto |
| collection | DOAJ |
| description | Capital structure is a mix of debts and equities used by a company to finance its investment. Debt offers benefit of tax shield from interest expenses that can be deducted in calculating company income tax. Unfortunately, company can not use debts in unlimited amount because it will lead to risk of bankcrupt. Therefore, company needs to establish a target (unobserved) capital structure which will optimize the value of the firm. The purpose of this study is to investigate the determinant of capital structure and ownership in public listed companies in Indonesia Stock Exchange using Time-Series CrossSection Regression (TSCSREG) and supported with a balanced panel data. Data used are financial statements of 228 public listed companies from group of eight industry sectors. Research finding confirms that tax shield and fixed financial burden are significantly influence the capital structure and state ownership also significantly influence the capital structure of the state owned enterprises. |
| first_indexed | 2024-04-12T23:37:09Z |
| format | Article |
| id | doaj.art-40f8515b40e641b5a6b57dc95bc0dc12 |
| institution | Directory Open Access Journal |
| issn | 2089-6271 2338-4565 |
| language | English |
| last_indexed | 2024-04-12T23:37:09Z |
| publishDate | 2013-04-01 |
| publisher | Prasetiya Mulya Publishing |
| record_format | Article |
| series | International Research Journal of Business Studies |
| spelling | doaj.art-40f8515b40e641b5a6b57dc95bc0dc122022-12-22T03:12:06ZengPrasetiya Mulya PublishingInternational Research Journal of Business Studies2089-62712338-45652013-04-01612943Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data AnalysisArief Tri Hardiyanto0Noer Azam Achsani1Roy SembelNur Ahmad MaulanaInstitut Pertanian Bogor, BogorIPMI International Business SchoolCapital structure is a mix of debts and equities used by a company to finance its investment. Debt offers benefit of tax shield from interest expenses that can be deducted in calculating company income tax. Unfortunately, company can not use debts in unlimited amount because it will lead to risk of bankcrupt. Therefore, company needs to establish a target (unobserved) capital structure which will optimize the value of the firm. The purpose of this study is to investigate the determinant of capital structure and ownership in public listed companies in Indonesia Stock Exchange using Time-Series CrossSection Regression (TSCSREG) and supported with a balanced panel data. Data used are financial statements of 228 public listed companies from group of eight industry sectors. Research finding confirms that tax shield and fixed financial burden are significantly influence the capital structure and state ownership also significantly influence the capital structure of the state owned enterprises.http://www.irjbs.com/index.php/jurnalirjbs/article/view/92/92capital structuredeterminant capital structuredebt equity ratiotime-series cross-section regressionbalanced panel dataownershipIndonesia Stock Exchange |
| spellingShingle | Arief Tri Hardiyanto Noer Azam Achsani Roy Sembel Nur Ahmad Maulana Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis International Research Journal of Business Studies capital structure determinant capital structure debt equity ratio time-series cross-section regression balanced panel data ownership Indonesia Stock Exchange |
| title | Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis |
| title_full | Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis |
| title_fullStr | Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis |
| title_full_unstemmed | Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis |
| title_short | Ownership and Determinants Capital Structure of Public Listed Companies in Indonesia: a Panel Data Analysis |
| title_sort | ownership and determinants capital structure of public listed companies in indonesia a panel data analysis |
| topic | capital structure determinant capital structure debt equity ratio time-series cross-section regression balanced panel data ownership Indonesia Stock Exchange |
| url | http://www.irjbs.com/index.php/jurnalirjbs/article/view/92/92 |
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