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

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The Impact of Corporate Governance on Firm’s Performance with Capital Structure as an Intervening Variable

Authors
Patrick Willyanto, Deddy Marciano, Didik Siswantoyo
Corresponding Author
Patrick Willyanto
Available Online February 2019.
DOI
10.2991/aicmar-18.2019.12How to use a DOI?
Keywords
corporate governance; capital structure; firm performance
Abstract

This study aims to analyze the effect of corporate governance towards financial performance using return on assets (ROA) with capital structure (C) as an intervening variable in the manufacturing industry which were listed in Indonesia Stock Exchange (BEI) from 2012 to 2016. The number of final samples exercised were 68 entities with 340 observations and the multiple regression is opted for assessing the dependent and independent variables. Based on the models, there are two findings, where the first finding suggests that ownership concentration (OWNCON) and independent director (DIRIND) variables have negative effect towards Long-Term Debt (LTD) while board of director size (BSIZE) has positive impact on the LTD. Further, director ownership (DIROWN), business size (BSIZE), risk, and growth variables do not attest the correlation with LTD. The second finding manifests that LTD variable has negative impact on ROA, however, liquidity (LIQ) and AGE variables are positively correlated with ROA. The authors have the belief that by including more independent variables or secondary data in the future research will affect the research finding.

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
10.2991/aicmar-18.2019.12
ISSN
2352-5428
DOI
10.2991/aicmar-18.2019.12How 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

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TY  - CONF
AU  - Patrick Willyanto
AU  - Deddy Marciano
AU  - Didik Siswantoyo
PY  - 2019/02
DA  - 2019/02
TI  - The Impact of Corporate Governance on Firm’s Performance with Capital Structure as an Intervening Variable
BT  - Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)
PB  - Atlantis Press
SP  - 54
EP  - 57
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicmar-18.2019.12
DO  - 10.2991/aicmar-18.2019.12
ID  - Willyanto2019/02
ER  -