State-Owned Enterprises and Cost of Debt: Evidence from Indonesia
| Main Authors: | Milano, Diva; School of Business and Management, Institut Teknologi Bandung, Koesrindartoto, Deddy Priatmodjo; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Proceedings of International Conference on Management in Emerging Markets (ICMEM) SBM ITB
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4692 https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4692/1582 |
Daftar Isi:
- State-Owned Enterprises or SOEs is a significant economic player. In Indonesia, SOEs as therepresentation of government dominates the strategicbusiness sectors and directly contribute to GDP andemployment, but the performance of SOEs in Indonesia is still associated with improper management such as poor and inefficient governance. In recent years, efficiency and restructuring of SOEs have continued to be carried out but currently, several SOEs are struggling to avoid the threat of bankruptcy due to the uncontrollable debt. Unfortunately, there isn’t much paper that discusses the SOEs and capital structure-related topics, especially debt financing. Thus, thisresearch aims to fill the gap and investigate the influence of state ownership on the cost of debt in Indonesia. The sample from this research is all bonds issued from non-financial public companies that are listed on Indonesia Stock Exchange in 2017-2019. The result indicates that the SOEs in Indonesia will receive a lower cost of debt compared to the non-SOEs. Moreover, this study also reveals some factors that could influence the cost of debt in Indonesia. Through the result from this study, this research could present new insight into corporate finance topics regarding capital structure decisions of SOEs in Indonesia. Keywords: state-owned enterprises, cost of debt