Pengaruh Penerapan Mekanisme Good Corporate Governance dan Ukuran Perusahaan terhadap Agency Cost
Abstract
This study examined the effect of implementation good corporate governance mechanism and firm size on agency cost of listed manufacturing companies in Indonesia Stock Exchange. The Study period is 2017 – 2019. The type of this research is quantitative research that uses secondary data based on annual report. A sample of this research consisted of 150 manufacturing companies. Agency cost is measured by ratio of operating expense to sales. Institutional ownership is measured by ratio from institutional ownership stock to total stock issued, independent board of commissioner measured by ratio from independent board of commissioner to total board of commissioner, dan company size measured by natural logarithm from total asset. Analysis of the data in this study used regression model selection test, classical assumption test, multiple linear regression, and partial hypothesis testing (t test). Based on the result of data analysis, it can be concluded that (1) institutional ownership has no effect on agency cost, (2) independent board commissioners has a positive significant effect on agency cost, (3) firm size has a negative significant effect on agency cost, and control variable (4) firm age has a positive significant effect on agency cost.
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