BUSINESS RISK, TANGIBLE ASSETS, AND FAMILY OWNERSHIP ON COMPANY DEBT POLICY

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

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