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/).

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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  -