Pengaruh corporate governance terhadap cost of equity capital (studi empiris pada perusahaan non keuangan di bursa efek Jakarta)

Dina, Rullita Farah, Prof. Dr. E. Tandelilin, MBA

2008 | Skripsi | S1 Economics

This research examines the association between corporate governance and cost of equity capital. An empirical research indicated a company which has a good corporate governance will reduce the cost of equity capital. This research examines corporate governance mechanism along five dimensions: transparency, insider ownership, institutional ownership, independent commissioners, and audit committee.

The sampling method is purposive sampling. The samples comprises of LQ 45 non financial companies listed in Jakarta Stock Exchange during 2003-2006. This study employs a multiple regression to test the hypothesis that corporate governance mechanism (transparency, insider ownership, institutional ownership, independent commissioners, and audit committee) and cost of equity capital are negatively related. The result shows that companies with a greater proportion of their shares held by institutions receive a lower cost of equity capital.

Kata Kunci : corporate goveranace, cost of equity capital