Open AccessPengaruh Struktur Kepemilikan Dalam Mekanisme Corporate Governance Terhadap Cost Of Equity Capital
Author(s) -
Tarjo Tarjo
Publication year - 2009
Publication title -
akrual
Language(s) - English
Resource type - Journals
eISSN - 2502-6380
pISSN - 2085-9643
DOI - 10.26740/jaj.v1n1.p89-104
Subject(s) - business , corporate governance , cost of equity , stock exchange , equity (law) , cost of capital , equity capital markets , accounting , finance , financial system , monetary economics , economics , private equity , microeconomics , profit (economics) , law , political science
Corporate governance mechanisms believed to have strong impact to the companies’ performance. Corporate governance mechanisms examined in this study are managerial ownership and institutional ownership structure. The purposes of this study are to know the variables effect of managerial ownership and institutional ownership on cost of equity capital. The samples of the study are firms listed in Jakarta Stock Exchange in 2005. The F-test on the all variables at the level confidence 1% indicates the effect of all variables on cost of equity capital is significant. The result of this study showed that managerial ownership and institutional ownership have positive significant impact (at the level of confidence 1% and 5%) on the cost of equity capital. However this result showed that corporate governance mechanisms fail to decrease the cost of equity capital.