Open AccessThe effect of ownership structure on leverage with credit rating as a moderating variable
Author(s) -
Harjum Muharam,
Galuh Kusuma Putri
Publication year - 2020
Publication title -
dijb (diponegoro international journal of business)
Language(s) - English
Resource type - Journals
eISSN - 2580-4995
pISSN - 2580-4987
DOI - 10.14710/dijb.3.2.2020.80-87
Subject(s) - leverage (statistics) , credit rating , business , bond credit rating , nonprobability sampling , moderation , stock exchange , variables , ordinary least squares , debt , financial system , econometrics , accounting , finance , economics , statistics , credit reference , credit risk , population , mathematics , demography , sociology
This paper aims to examine the effect of ownership structure on leverage with credit rating as a moderating variable. The ownership structure used in this study is government ownership and managerial ownership. Leverage is measured using a debt to assets ratio (DAR). Credit rating uses ratings issued by PEFINDO.The sample used in this study was companies rated by PEFINDO and listed on the Indonesia Stock Exchange in 2015-2017. The number of samples used were 53 companies determined using a purposive sampling method. The analysis using Ordinary Least Square (OLS) regression analysis indicated that government ownership does not affect leverage, and the credit rating does not moderate the relationship between government ownership and leverage. Managerial ownership has a negative effect on leverage, and the credit rating moderates the relationship between managerial ownership and leverage