Internationalization, Capital Structure, and Ownership Structure: A Case of Companies in Indonesia

Abstract

This study aims to examine the influence of concentrated ownership, managerial ownership, and institutional ownership in moderating the influence of internationalization on capital structure. Test the hypothesis using the fixed effect model multiple regression method with the Driscoll-Kraay estimator as a robust standard error. The samples used were manufacturing industry sector companies listed on the Indonesia Stock Exchange in the 2017-2021 period, so 81 companies were obtained that had passed the purposive sampling criteria in this study. The results showed that internationalization significantly positively affects capital structure. In the moderating variable, concentrated ownership and institutional ownership weakened the positive influence of internationalization on the capital structure. Meanwhile, managerial ownership does not significantly weaken the positive influence of internationalization on capital structure.