Company's performance and ownership structure influence on family and non-family company's capital structure (empirical studies in Indonesia)

Abstract

This study aims to examine whether there's a difference in a family-owned company's capital structure measured by the company's performance and ownership structure. Company performance is proxied by profitability, size, and business risk. Another variable, gender diversity was also added into this research to see how it affects the company's capital structure. With purposive sampling techniques, this study utilizes sample data of all companies that are listed in the Kompas100 Index with an observation period from 2016 to 2019. The regression result shows there is a slight difference of variables that affect family-owned company's capital structure compared with non-family-owned companies. A company's performance and ownership structure affect the capital structure of family-owned and non-family-owned companies. Profitability, size, and institutional ownership have a significant effect on a family-owned company's capital structure. Meanwhile, in a non-family-owned company, profitability, size, and gender diversity have significant effects on the capital structure.