THE INFLUENCE OF CAPITAL STRUCTURE AND MANAGERIAL OWNERSHIP ON COMPANY PERFORMANCE THROUGH AGENCY COST AS INTERVENING VARIABLES

Yamasitha Yamasitha

doi:10.38035/jafm.v1i2.24

Abstract

The purpose of this research is to examine the effect of capytal structure and managerial ownership on firm performance by agency cost as an the intervening variable. The sample used is a manufacturing company sector 4 (varoius industries) and sector 5 (goods industries consumsy) listed in Indonesia Stock Exchange in 2015-2019. Were selected in the sampling method of sample use purposive.The data use dissecondary data and the analysis methodusedis multiple regression path analyze method. The results showed that the independent variables capital structure has a negative effect on the agency cost, and managerial ownership has a negative effect on the agency cost. The independent variables capital structure has a negative effect on the firm performance and capital structure has a negative indirect effect on the firm performance by agency cost. The independent variables managerial ownership has no positive effect on the firm performance and managerial ownership has a negative indirect effect on the firm performance by agency cost. Agency cost has no negative effect on the firm performance.

Highlights

At the moment the investment company that invests to, or form a a new business, with the purpose of achieving welfare profit and investors.Investors will have earned invested to companies that perusahaannnya good performance, and having future still good.To this the company to be able to return or producing profit from the implanted investors
The results showed that the independent variables capital structure has a negative effect on the agency cost, and managerial ownership has a negative effect on the agency cost
Based on its financial report investors may know the performance of the company and the company in profit or profit .For a corporate investor capable of yielding high for what invested, be attraction to investors .An indicator that can be used in the process of the analysis is financial investors ratio or ratio a financial .Financial performance reflects the company in producing gain was the ratio profitability.return on equity (ROE) used for indicating the level of return produced by the management of capital derived from owners and shareholders .The higher roe means more effectively and efficiently the company uses capital and investor confidence in investing the higher and have an impact on share prices .This must be considered by investors in choosing stocks

Summary

Introduction

At the moment the (capital investors) investment company that invests to, or form a a new business, with the purpose of achieving welfare profit and investors.Investors will have earned invested to companies that perusahaannnya good performance, and having future still good.To this the company to be able to return or producing profit from the implanted investors. One performance indicators the company is return on assets roa (ROA ).ROA is more presented the best interests of stockholders.Roa value an increasingly large show the good company performance.Investors like menguntungkan because the return rate high.(. Available Online: http://dinastires.org/index.php/JAFM sudana, 2011: 23 ) company with good financial performance generate profit so as to have the rate of return maximum investment high. Based on its financial report investors may know the performance of the company and the company in profit or profit .For a corporate investor capable of yielding high for what invested , be attraction to investors .An indicator that can be used in the process of the analysis is financial investors ratio or ratio a financial .Financial performance reflects the company in producing gain was the ratio profitability.return on equity (ROE) used for indicating the level of return produced by the management of capital derived from owners and shareholders .The higher roe means more effectively and efficiently the company uses capital and investor confidence in investing the higher and have an impact on share prices .This must be considered by investors in choosing stocks. Is like a bonus of the money to the management and costs to be issued to supervision to prevent loss.Agency cost can be defined as the use of cash flow for the accumulated nonessential which done by manager for free cash flow ( cash flow management available for diskresioner used )

Objectives

Methods

Results

Discussion

Conclusion