Corporate Governance and Debt Equity Ratio: Its effect on Share Price
Triyono Adi Tristanto1, Nugraha2, Ikaputera Waspada3, Maya Sari4, Imas Purnamasari5, Kartika Septiani6

1,2,3,4,5 Department of Management, Universitas Pendidikan Indonesia, Bandung, Indonesia
6 Institut Bisnis dan Informatika Kosgoro 1957 Jakarta, Iindonesia
*email: t.aditristanto[at]upi.edu

Abstract

This paper investigates the impact of Corporate Governance and Debt Equity Ratio on the Share Price in Manufacturing Companies of the Consumer Goods Industry, Firms listed in Indonesia Stock Exchanges are taken as sample. Time period is 2017-2019. Corporate Governance has been measured using Institutional Ownership, Proportion of Independent Commissioners and Audit Committee. Our findings confirm that there is a significant impact of the proportion of independent commissioners and audit committee on share price. Institutional ownership has no impact on share price. Our findings also imply that the Debt Equity Ratio has a significant impact on share price.

Keywords: Institutional Ownership, Proportion of Independent Commissioners, Audit Committee, Debt Equity Ratio (DER) and Share Price

Topic: Financial Management and Accounting