BOARD GOVERNANCE AND FIRM'S LEVERAGE; A RESOURCE DEPENDENCE PERSPECTIVE

Julia, Rina Fatma (2008) BOARD GOVERNANCE AND FIRM'S LEVERAGE; A RESOURCE DEPENDENCE PERSPECTIVE. Other thesis, Fakultas Ekonomi.

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Abstract

While most literature in Corporate Governance has been dealed with agency theory, this study includes resource dependence perpective to look at the relationship between board governance, specifically consist of board size and proportion of Independent Commissioners and firm's leverage as a part of capital structure decision in Real Estate and Property listed companies in Jakarta Stock Exchange (JSX). Results show leverage as meosured by total debt to total assets indicates positive insignificant influence with board size and proportion of Independent Commissioners. These results suggest that in agency perspective, the choice more leverage in mitigating agency problem is not really relevant, while resource dependence perspective is more pronounced. Keywords: corporate governance, agency theory, resource dependence theory, board size, independent commissioners, leverage.

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