| dc.description.abstract | Serafana, Alin (2007) "The Analysis of the Impact of Capital Structure and Ownership Concentration on Agency Costs: A Case Study on Manufacturing Industries Listed in Jakarta Stock Exchange (JSX) from 2001 to 2004" Yogyakarta: Management Department, International Program Faculty of Economics, Islamic University of Indonesia
The purpose of this study is to analyze whether the capital structure and ownership concentration have significant influence on agency costs on manufacturing companies listed in Jakarta Stock Exchange (JSX) from 2001 to 2004 based on the agency theory perspective. The researcher uses asset utilization ratio as proxy of agency costs, the dependent variable and uses Ordinary Least Square (OLS) as the analysis method.
Since the sample of this research are companies listed in manufacturing industries consistently from 2001 until 2004, there are only 113 firms that fulfill the requirements. This research gives two main findings: 1) Capital structure has positive influence on agency costs, but not significant. 2) Ownership concentration has positive significant influence to agency costs, at 5 % significant level. Meaning that the firms with the largest shareholders have a strong interest in the firm performance in improving their asset utilization and therefore have a high ability to reduce the, agency cost. This second finding is supportive to a research done by Li and Ciu (2003). | en_US |
