Capital structure, agency cost, size and firm value of small and medium listed companies

Authors

  • Gusni Universitas Widyatama, Bandung, Indonesia Author
  • Siska Merdekawati Universitas Widyatama, Bandung, Indonesia Author
  • Fitri Pratiwi Jatnika Universitas Widyatama, Bandung, Indonesia Author
  • Widi Nurina Agustia Universitas Widyatama, Bandung, Indonesia Author
  • Lastri Marina Universitas Widyatama, Bandung, Indonesia Author
  • Risna Anisa Universitas Widyatama, Bandung, Indonesia Author

Keywords:

capital structure, agency cost, firm size, firm value, small and medium listed firm

Abstract

Firm value has an important role because it can explain how the market appreciates the company. This paper aims to explore the influence of capital structure, agency cost, and firm size on the company value of small and medium-listed firms in the Indonesian stock exchange. In the way to achieve the study objective, data was gathered from 227 small and medium listed firms from 2019 to 2020 selected by using certain criteria. This study applied a panel data regression model with a random effect approach to detect the impact of capital structure, agency cost, and firm size on the firm value. Statistical test results denote that capital structure and agency costs have a positive effect on firm value, while firm size has no effect. These study findings provide an outlook that capital structure decisions and agency cost control can maximize firm value in small and medium companies listed on the development index of the Indonesian capital market.

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Published

2022-01-30

How to Cite

Gusni, Merdekawati, S., Jatnika, F. P., Agustia, W. N., Marina, L., & Anisa, R. (2022). Capital structure, agency cost, size and firm value of small and medium listed companies. CENTRAL ASIA AND THE CAUCASUS, 23(1), 4583-4590. https://ca-c.org/CAC/index.php/cac/article/view/452

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