Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)

The Influence of Capital Structure Determinant Variables Toward Corporate Debt Ratio Which Mediated by Agency Cost

Authors
Rudolf Lumbantobing
Corresponding Author
Rudolf Lumbantobing
Available Online February 2019.
DOI
10.2991/aicmar-18.2019.11How to use a DOI?
Keywords
insider ownership; growth opportunity; agency conflict; manufacturing; debt ratioo
Abstract

This research purposes to explore the mediating effect of agency cost towards the capital structure differences between the industrial companies of the manufacturing sector and non-manufacturing sector which listed in the Indonesian Stock Exchange. This research employed quantitative approach by applying path analysis to analyze the mediating effect of agency cost toward the influences of capital structure determinant variables toward debt ratio. These findings revealed that growth opportunity and insider ownership significantly affected agency cost. The agency cost significant positively effected debt ratio. Debt ratio in both sectors have no significant differences. The agency cost in both sectors mediated the effect of capital structure determinant variables on corporate debt ratio. Finally, the mediating effect of agency cost on debt ratio in industrial companies of the manufacturing sector was higher than the companies of the non-manufacturing sector.

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/).

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Volume Title
Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
February 2019
ISBN
978-94-6252-672-3
ISSN
2352-5428
DOI
10.2991/aicmar-18.2019.11How to use a DOI?
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  - Rudolf Lumbantobing
PY  - 2019/02
DA  - 2019/02
TI  - The Influence of Capital Structure Determinant Variables Toward Corporate Debt Ratio Which Mediated by Agency Cost
BT  - Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)
PB  - Atlantis Press
SP  - 50
EP  - 53
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicmar-18.2019.11
DO  - 10.2991/aicmar-18.2019.11
ID  - Lumbantobing2019/02
ER  -