Does Religion Affect Capital Structure in Indonesia?

The purpose of this study is to analyse the influence of the religion and religious values of Chief Executive Officers (CEOs) on capital structure in public companies in Indonesia. The religious values embraced by CEOs are reflected in their involvement in fraud cases and the frequency of their atte...

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Publicado en:Pertanika Journal of Social Sciences & Humanities Vol. 27; no. S2; pp. 131 - 152
Autores principales: Rahim, Rida, Utama, Cynthia Afriani, Rokhim, Rofikoh
Formato: Artículo
Publicado: Universiti Putra Malaysia 2019 Special Issue
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Does Religion Affect Capital Structure in Indonesia?
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        au:
          Rahim, Rida
          Utama, Cynthia Afriani
          Rokhim, Rofikoh
        affil:
          Department of Management, Faculty of Economics, Andalas University, 25166, Padang, West Sumatera, Indonesia
          Department of Management, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, West Java, Indonesia
      su:
        Religion
        Capital structure
        Chief executive officers
        Debt
        Fraud
        Indonesia
      sug:
        subj:
          Indonesia
          Religion
          Capital structure
          Chief executive officers
          Debt
          Fraud
      keyword:
        Attendance
        CEO's religion
        debt
        fraud
      ab: The purpose of this study is to analyse the influence of the religion and religious values of Chief Executive Officers (CEOs) on capital structure in public companies in Indonesia. The religious values embraced by CEOs are reflected in their involvement in fraud cases and the frequency of their attendance at board meetings. The study used a sample of 231 companies (1,386 observations) over the period 2010-2015. It was found that if firms had a Christian CEO this would have a significant impact on capital structure due to the higher debt levels, compared to CEOs of other religions. Conversely, Muslim CEOs had an insignificant impact on capital structure. Similarly, CEOs who were involved in fraud cases had more debt than those not involved in such cases. CEO attendance at board meetings also had a significant positive impact on corporate debt level.
      pubtype: Academic Journal
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    language: English
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      custom: Copyright of Pertanika Journal of Social Sciences & Humanities is the property of Universiti Putra Malaysia and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use.
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