PENGARUH UTANG JANGKA PENDEK DAN STRUKTUR KEPEMILIKAN INSTITUSIONAL TERHADAP KINERJA PERUSAHAAN YANG TERCATAT PADA INDEKS SAHAM SYARIAH PERIODE 2016-2018

Abstract

The trade-off theory by Kraus and Litzenberg (1972) indicates that debt has its effect on firm performance. As well as agency theory stated by Jensen and Meckling (1976), showing an effect between ownership structure and manager’s works, hence agency cost could be minimized and firm performance could be maximized. Therefore, this paper identifies the effect of short-term debt and institutional ownership towards firm performance partially and simultaneously, choosing 51 companies of trade, services, and investment sector of Indonesia Sharia Stock Index during 2016-2018. Three variables: short-term debt to total assets, institutional ownership, and Tobin’s Q have been tested using data panel regression analysis. Partially, the results show a positive and significant effect between short-term debt and firm performance. However, institutional ownership does not show any effect on firm performance. Simultaneously, short-term debt and institutional ownership have a significant effect on firm performance.Keywords: capital structure, ownership structure, firm performance