Determinants of capital structure: What can be the Determinants of Capital Structure of regional development banks in Indonesia?
| Main Authors: | Agustin, Hamdi, Rahman, Firdaus Abdul |
|---|---|
| Format: | Article PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2013
|
| Subjects: | |
| Online Access: |
http://repository.uir.ac.id/902/1/Determinants%20of%20capital%20structure.pdf http://repository.uir.ac.id/902/ |
Daftar Isi:
- One of the unique banking in Indonesia is that there are regional development banks (BPD), which is a government-owned bank districts. regional development banks categorized as focused bank, ie the bank with regional focus. The objectives of this research is determinants of capital structure in region development bank (Bank Pembangunan Daerah). This research is to test the impact of different explanatory variables of capital structure internal and external factors. The external variables of the economy of a country in Indonesia are regional autonomy, economic crisis and bank policy of government. The internal factor or characteristics of an individual bank are profitability, loans and size. The population consists of 26 community development banks. The study 14 regional development banks because of difficulty in getting the data. The period under study is from 1995 to 2010. The results showed the variable regional autonomy negative impact on leverage because obtain additional funds from the local government. Dummy equity positive impact on leverage the show that equity have more than 100 billion would increase the amount of debt and the crisis negative impact on leverage because BPD reduces the amount of debt for avoiding from bankruptcy. Internal variables showed loans negative impact on leverage, assets positive impact on leverage, while profitability has not impact different from previous studies.