EXPLORING THE INFLUEENCE OF COMPANY AGE ON THE COST OF EQUITY IN INDONESIAN MANUFACTURE COMPANIES

Authors

  • Berna Ratna Sari Perbanas Institute, Faculty of Economic and Business, Jakarta, Indonesia
  • Dinda Afifah Kurniawati Perbanas Institute, Faculty of Economic and Business, Jakarta, Indonesia
  • Atik Djajanti Perbanas Institute, Faculty of Economic and Business, Jakarta, Indonesia

Keywords:

cost of equity, company age, earning management, characteristic of the board of directors, information asymmetry

Abstract

Equity is an important source of funds for companies. This research aims to analyze the factors that influence the Cost of Equity of manufacturing companies in Indonesia. The factors studied consisted of earnings management, characteristics of the board of directors, company age, and information asymmetry. The research population is manufacturing companies in the consumer goods sector listed on the IDX in 2019-2021. Data analysis uses multiple regression. The results of the research show that partially the age of the company has a significant negative effect on the cost of equity. Meanwhile, earnings management, characteristics of the board of directors and information asymmetry have no effect. These results can be a reference for investors and regulators that company age is proven to reflect business sustainability and ultimately contribute positively to the creation of an inclusive financial environment that supports economic growth.

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Published

2024-08-16

Issue

Vol. 2 (2024): Proceedings of the Perbanas International Seminar on Economics, Business, Management, Accounting and IT

Section

Articles