Title: BUSINESS RISKS, TANGIBLE ASSETS, AND FAMILY OWNERSHIP ON COMPANY DEBT POLICY

Authors: TIYA MULIA NINGTYAS

Item Type: Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This study aims to examine the influence of business risk, tangible assets, and family ownership on the debt policy of publicly listed manufacturing companies listed on the Indonesia Stock Exchange from 2011 to 2016. The determination of a company's business risk is proxied by Degree Operating Leverage (DOL), tangible assets are measured by fixed assets divided by total assets, and family ownership is calculated from the proportion of share ownership from family elements or serving as board of directors or commissioners compared to the total company shares in general. Debt policy is measured by the Debt to Equity Ratio (DER) proxy. This study also uses profitability, company size, and company growth as control variables. The research sample consists of 46 companies. The research method used is purposive sampling with multiple linear regression analysis techniques and hypothesis testing using the t-test. The results show that business risk has a negative but insignificant effect on debt policy. Tangible assets, company size, and company growth have a positive and significant effect on debt policy. Family ownership has a positive but insignificant effect on debt policy. Profitability has a negative and significant effect on debt policy.

Keywords: Debt Policy, Business Risk, Tangible Assets, Family Ownership, Profitability, Company Size, Company Growth

Sources: http://repository.unair.ac.id/70382/