PENGARUH KINERJA KEUANGAN, GOOD CORPORATE GOVERNANCE DAN STRUKTUR ASET TERHADAP KEBIJAKAN HUTANG

Abstract

This research aimed to examine the effect of financial performance, good corporate governance and asset
structure on debt policy of LQ-45 companies which were listed on Indonesia Stock Exchange 2014-2018. The
research was quantitave. While, the population was all LQ-45 companies which were listed on Indonesia Stock
Exchange 2014-2018. Moreover, the data collection technique used purposive sampling, in which the sample was
based on criteria given. In line with, there were 14 companies as sample. Furthermore, the data analysis
technique used multiple regression with Statistical Product and Service Solution (SPSS). The research result
concluded Return on Asset (ROA) had negative effect on debt policy. It meant, companies had prefer to internal
funds for its companyoperation. On the other hand, Return on Equity (ROE) had positive effect on debt policy.
In other words, companies had prefer funding from debt, since it was used to reduce misuse of funds by
management. Meanwhile, managerial pwnership had negative effect on debt policy. It meant, the greater the
shares owned by managers, the smaller the debt proportion of corporate funding. In contrast, institusional
ownership had high authority in the company. In addition, the asset structure did not affect the debt policy since
the company won’t guarantee its assets to obtain debt.
Keyword: financial performance, good corporate governance, asset structure, debt policy