Corporate Governance dan Finance Pattern
Windijarto & Lila Gestanti

Faculty of Economy and Business, Airlangga University, Jl. Airlangga 4-6, Surabaya 60285, Indonesia.

Abstract

Purpose: This research aims to analyze the effect of corporate governance on the finance pattern for non financial go public firms that listed in Indonesia Stock Exchange for 2010-2014. Methods: Linear Multiple Regression was used in this study. The dependent variable is finance pattern retained earnings and finance pattern debt. There are 21 firms used finance pattern retained earning and there are 32 firms used finance pattern debt. The independent variables are board of director share ownership, independent commisioner, board size, and blockholder. The control variable is firm characteristics that consists of firm size, tangibility, profitability, and profitability in the previous period. Result: The results of this study are board of director ownership and profitability significant positive effect on finance pattern retained earnings; blockholder and the size of the company significant negative effect on finance pattern retained earnings; independent commissioner, board size, and tangibility no significant effect on finance pattern retained earnings; firm size and tangibility significant positive effect on finance pattern debt; board size and profitability in the previous period significant negative effect on the finance pattern debt; board of director ownership, also independent commissioner, and blockholder no significant effect on the finance pattern debt.

Keywords: corporate governance, finance pattern retained earnings, finance pattern debt, firm characteristics

Topic: Financial Management and Accounting