Good Corporate Governance, Firm Age, and Capital Structure

Abstract

This study examines the effect of Good Corporate Governance and firm age on property and real estate companies' capital structure. The data used are secondary in financial statements from the Indonesia Stock Exchange on property and real estate companies in 2015-2017. The variables tested are Good Corporate Governance, which is proxied by the board of directors' size, independent commissioners, managerial ownership, audit committee, and the firm age. One dependent variable is the capital structure. The hypothesis was tested using multiple linear regression with the help of SPSS for Windows Release 23. This study provides evidence that the board of directors and audit committees' size influences the capital structure. Independent commissioners have a negative effect on capital structure, while managerial ownership and firm age do not affect capital structure.