Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR

Factors Affecting the Use of Leverage Among Manufacturing Firms in Indonesia

Authors
Margarita Ekadjaja, Agustin Ekadjaja, Halim Putera Siswanto
Corresponding Author
Halim Putera Siswanto
Available Online 29 June 2020.
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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Volume Title
Proceedings of the 8th International Conference on Entrepreneurship and Business Management (ICEBM 2019) UNTAR
Series
Advances in Economics, Business and Management Research
Publication Date
29 June 2020
ISBN
10.2991/aebmr.k.200626.051
ISSN
2352-5428
DOI
10.2991/aebmr.k.200626.051How to use a DOI?
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/).

Cite this article

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  -