International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
We examine the effect of institutional ownership and voluntary disclosure on cost of debt for the population of manufacturing companies listed in the Indonesia Stock Exchange (IDX) from 2006-2010. Voluntary disclosure is measured using the 32 criteria established by researchers below. The sample of 34 companies is selected from the population using a purposive sampling method. This study uses secondary data from the IDX Capital Market Reference Center in the form of annual financial reports from 2006-2010. Statistical testing is by using multiple regression analysis. This study uses firm size as a control variable. Our results show that institutional ownership and voluntary disclosure have a negative significant effect on cost of debt that is they reduce the cost of debt. Meanwhile, the size of a firm does not affect the cost of debt.
How to cite this article:
Agus Ismaya Hasanuddin. The Effect of Institutional Ownership and Voluntary Disclosure on Cost of Debt.
DOI: https://doi.org/10.36478/ibm.2017.1517.1522
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2017.1517.1522