The Effect of Board Governance and Debt Policy on Value of Non-Financial Firms

Sahabuddin, Zainal Abidin and Hadianto, Bram (2019) The Effect of Board Governance and Debt Policy on Value of Non-Financial Firms. Investment Management and Financial Innovations, 16 (2). pp. 37-46. ISSN 1812-9358

	Text 2019 The Effect of Board Governance_Lengkap.pdf Download (768Kb)
Preview	Text 2. Turnitin_The effect of board governance and debt policy on value of non-financial firms.pdf Download (2586Kb) | Preview

Abstract

Supervisory board plays an essential role to implement good governance in firm. If this governance is implemented well, the increase in firm value will occur. Related to this statement, the main question that appears is about the number and independence rate of supervisory board members needed to enhance firm value. Besides supervisory board, debt policy holds an important role for firm because of bankruptcy issue. Firm with good governance tries to avoid this issue by decreasing the amount of its debt to create high value. The aim of this study is to test and analyze the effect of board governance, consisting of size and independence of supervisory board, and debt policy on value of non-financial firms forming the Kompas 100 Index on Indonesia Stock Exchange. To be able to generalize results on all non-financial firms forming this index, stratified random sampling method is used to take firms as the sample from the population. Method of data analysis used is fixed effect regression model. This study infers that the number of supervisory board members has no effect on firm value, whereas board independence and debt policy have the effect on firm value: firm with high portion of supervisory board independence and the amount of debt significantly tends to have low value

Item Type:	Article
Uncontrolled Keywords:	debt policy, firm value, supervisory board independence
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User:	Perpustakaan Maranatha
Date Deposited:	08 Feb 2023 02:38
Last Modified:	24 Feb 2023 07:36
URI:	http://repository.maranatha.edu/id/eprint/31298

Actions (login required)

View Item