The role of independent commissioner in the effect of family ownership on capital structure in family companies in Indonesia

Rahmat Setiawan; Nunik Dwi Kusumawati

doi:10.14414/tiar.v10i2.1972

Vol. 10 No. 2 (2020), Articles

Vol. 10 No. 2 (2020)

The role of independent commissioner in the effect of family ownership on capital structure in family companies in Indonesia

Articles

DOI: 10.14414/tiar.v10i2.1972

Published 2020-09-10

Rahmat Setiawan⁺⁻
Nunik Dwi Kusumawati⁺⁻

Rahmat Setiawan

Universitas Airlangga

Nunik Dwi Kusumawati

Universitas Airlangga

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Keywords

Capital structure
family ownership
independent commissioner.

How to Cite

Setiawan, Rahmat, and Nunik Dwi Kusumawati. “The Role of Independent Commissioner in the Effect of Family Ownership on Capital Structure in Family Companies in Indonesia”. The Indonesian Accounting Review, vol. 10, no. 2, Sept. 2020, pp. 135-4, https://doi.org/10.14414/tiar.v10i2.1972.

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

The purpose of this research is to analyze the effect of family ownership on capital structure with independent commissioner as a moderating variable in family companies in Indonesia. The study used the population consisting ofÂ family businesses listed on Indonesia Stock Exchange. The data were taken fromÂ the Indonesian Capital Market Directory (ICMD), financial statements, and annual report and the observation period was done from 2012 to 2018. The sampe was taken byÂ a purposive sampling basedÂ the specified criteria. Based on the analysis result, it can be concluded that family ownership has a significant negative effect on capital structure. Independent commissionerweakens significantly the negative effect of family ownership on capital structure. Furthermore,firm sizehas a significant positive effect on capital structure, but profitability has a significant negative effect on capital structure.

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The role of independent commissioner in the effect of family ownership on capital structure in family companies in Indonesia

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