DOES CHIEF EXECUTIVE OFFICER CHARACTERISTICS AFFECT COMPANY DEBT POLICY? EVIDENCE FROM THE PROPERTY AND REAL ESTATE SECTOR IN INDONESIA
Keywords:
CEO Duality, CEO Experience, CEO Age, CEO Gender, CEO Tenure, Debt Policy
Abstract
This research aims to analyze the influence of CEO characteristics on debt policy. The object of this research is property and real estate sector companies listed on the Indonesia Stock Exchange for the 2018–2022 period. Based on the purposive sampling, there were 46 companies that fulfilled the criteria. The analysis technique used in this study is PLS-SEM using Warp-PLS 8.0. The results of this research show that CEO duality and CEO age have a negative and significant effect on debt policy. Furthermore, CEO experience and CEO tenure have a positive and significant effect on debt policy. Meanwhile, CEO gender has no effect on debt policy. Theoretically, this study contributes to the upper echelon theory. Practically, this study has implications for the importance of factors from CEO characteristics that impact strategic decisions in the company relating to the debt policy.
References
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Gan, Liu, Wujun Lv, and Yifei Chen. 2021. “Capital Structure Adjustment Speed over the Business Cycle.” Finance Research Letters 39(May 2019):101574. doi: 10.1016/j.frl.2020.101574.
Haider, Imran, Nigar Sultana, Harjinder Singh, and Yeut Hong Tham. 2020. “CEO Age and Analysts Forecast Properties.” Asian Review of Accounting 28(1):1–23. doi: 10.1108/ARA-02-2019-0054.
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Nofiani, Rika, and Barbara Gunawan. 2018. “Pengaruh Kepemilikan Institusional, Free Cash Flow (FCF), Dan Investment Opportunity Set (IOS) Terhadap Kebijakan Hutang (Studi Empiris Pada Perusahaan Manufatur Yang Terdaftar Di Bei Tahun 2014-2016).” Reviu Akuntansi Dan Bisnis Indonesia 2(2):144–52. doi: 10.18196/rab.020228.
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Oktariyani, Oktariyani, and Afriyanti Hasanah. 2019. “Pengaruh Free Cash Flow, Likuiditas Dan Kepemilikan Asing Terhadap Kebijakan Hutang Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia.” Journal of Applied Managerial Accounting 3(1):20–35. doi: 10.30871/jama.v3i1.928.
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Rezki, Yuliana, and Hairul Anam. 2020. “Pengaruh Kepemilikan Manajerial, Pertumbuhan Perusahaan Dan Free Cash Flow Terhadap Kebijakan Utang.” JURNAL AKUNTANSI DAN BISNIS : Jurnal Program Studi Akuntansi 6(1):77–85. doi: 10.31289/jab.v6i1.3010.
Setyawan, Angelia Meysi, and Dan Devie. 2017. “Pengaruh CEO Duality Terhadap Firm Value Dengan Financial Performance Sebagai Variabel Intervening.” Business Accounting Review 4(1):325–36.
Sudana, I. Made, and Elka Dwiputri. 2018. “Karakteristik CEO Dan Kinerja Perusahaan Non-Keuangan Yang Teraftar Di Bursa Efek Indonesia.” Jurnal Manajemen Dan Bisnis Indonesia 5(3):299–314. doi: 10.31843/jmbi.v5i3.169.
Sulistiani, Ana, and Linda Agustina. 2019. “Analysis Journal Determinants of Debt Policy with Profitability as a Moderating Variable.” Accounting Analysis Journal 8(3):184–90. doi: 10.15294/aaj.v8i3.35181.
Tanjaya, Felix Leonardo, and Eko Budi Santoso. 2020. “ASOSIASI KARAKTERISTIK CEO TERHADAP POTENSI KESULITAN KEUANGAN PERUSAHAAN.” Media Akuntansi Dan Perpajakan Indonesia 1(number 2):153–68.
Tarigan, Vitryani, Djuli Sjafei Purba, and Sri Martina. 2022. “Pengaruh Ukuran Perusahaan , Likuiditas Dan Profitabilitas Terhadap Kebijakan Hutang Pada Perusahaan Pertambangan.” Owner: Riset & Jurnal Akuntansi 6:4291–4300.
Tinga, Irene Wei Kiong, Noor Azlinna Binti Azizan, and Qian Long Kweh. 2015. “Upper Echelon Theory Revisited: The Relationship between CEO Personal Characteristics and Financial Leverage Decision.” Procedia - Social and Behavioral Sciences 195:686–94. doi: 10.1016/j.sbspro.2015.06.276.
Unnuriyah, Ulfah, and Ira Septriana. 2021. “Pengaruh Likuiditas, Profitabilitas, Dan Pertumbuhan Penjualan Terhadap Kebijakan Hutang (Studi Empiris Pada Perusahaan Food and Beverage Yang Terdaftar Di BEI).” ECONBANK: Journal of Economics and Banking 3(2):87–96. doi: 10.35829/econbank.v3i2.180.
Zurriah, Rezki. 2018. “Pengaruh Free Cash Flow Dan Kepemilikan Manajerial Terhadap Kebijakan Hutang (Studi Pada Perusahaan Yang Terdaftar Di Jakarta Islamic Index).” JURNAL AKUNTANSI DAN BISNIS : Jurnal Program Studi Akuntansi 4(2):31. doi: 10.31289/jab.v4i2.1664.
Chua, Meishan, Nazrul Hisyam Ab Razak, Annuar Md Nassir, and Mohamed Hisham Yahya. 2022. “Dynamic Capital Structure in Indonesia: Does the Education and Experience of CEOs Matter?” Asia Pacific Management Review 27(1):58–68. doi: 10.1016/j.apmrv.2021.05.003.
CNBC Indonesia. 2021. “Geger Utang Evergrande Rp 4.000 T, Emiten Properti RI Sehat?” CNBC Indonesia. Retrieved (https://www.cnbcindonesia.com/market/20210921090310-17-277832/geger-utang-evergrande-rp-4000-t-emiten-properti-ri-sehat/1).
Diantini, Ni Nyoman Ayu. 2022. “Peran Ceo Perempuan Dalam Keputusan Struktur Modal Dan Optimasi Nilai Perusahaan.” E-Jurnal Manajemen Universitas Udayana 11(7):1357. doi: 10.24843/ejmunud.2022.v11.i07.p05.
Endri, Endri, Bob Mustafa, and Oscar Rynandi. 2019. “Determinants of Debt Policy of Real Estate and Property Companies Listed on the Indonesia Stock Exchange.” International Journal of Economics and Financial Issues | 9(2):96–104.
Fahmie, Arief. 2022. “Pengaruh Dividen, Struktur Aset, Profitabilitas Dan Ukuran Perusahaan Terhadap Kebijakan Hutang.” Jurnal Ilmiah Akuntansi Kesatuan 10(1):123–30. doi: 10.37641/jiakes.v10i1.1264.
Fitria, Bulan Tati. 2020. “Pengaruh Ukuran Perusahaan, Struktur Aset, Pertumbuhan Perusahaan, Profitabilitas Terhadap Kebijakan Utang.” Jurnal Program Studi Pendidikan Ekonomi Vol.9((No.1)):(34 – 41).
Fitriyani, Ulfi Nihayah, and Muhammad Khafid. 2019. “Profitability Moderates the Effects of Institutional Ownership , Dividend Policy and Free Cash Flow on Debt Policy.” 8(1):45–51. doi: 10.15294/aaj.v8i1.25575.
Gan, Liu, Wujun Lv, and Yifei Chen. 2021. “Capital Structure Adjustment Speed over the Business Cycle.” Finance Research Letters 39(May 2019):101574. doi: 10.1016/j.frl.2020.101574.
Haider, Imran, Nigar Sultana, Harjinder Singh, and Yeut Hong Tham. 2020. “CEO Age and Analysts Forecast Properties.” Asian Review of Accounting 28(1):1–23. doi: 10.1108/ARA-02-2019-0054.
Hambrick, Donald C., and Phyllis A. Mason. 1984. “Upper Echelons : Of Reflection The Its Organization as Reflection of Its Top Managers.” Management 9(2):193–206.
Huang, Zhen, and Weiwei Gao. 2022. “The Effects of Formal and Informal CEO Power on Debt Policy Persistence.” North American Journal of Economics and Finance 62(August 2021):101748. doi: 10.1016/j.najef.2022.101748.
Huang, Zhen, Weiwei Gao, and Liying Chen. 2020. “Does the External Environment Matter for the Persistence of Firms’ Debt Policy?” Finance Research Letters 32(127). doi: 10.1016/j.frl.2018.12.021.
Khanna, Sakshi, Amit Srivastava, and Yajulu Medury. 2015. “The Effect of Macroeconomic Variables on the Capital Structure Decisions of Indian Firms: A Vector Error Correction Model/Vector Autoregressive Approach.” International Journal of Economics and Financial Issues 5(4):968–78.
Linda, Maya Febrianty Lautania, and Muhammad Arfandynata. 2017. “Determinan Kebijakan Hutang (Bukti Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia).” Jurnal Dinamika Akuntansi Dan Bisnis 4(1):91–112. doi: 10.24815/jdab.v4i1.6628.
Markus, Schmid, Limbach Pater, Francois Brochet, and Scholz-Danesghari Meik. 2019. “CEO Tenure and Firm Value.” (16).
Naseem, Muhammad Akram, Jun Lin, Ramiz ur Rehman, Muhammad Ishfaq Ahmad, and Rizwan Ali. 2020. “Does Capital Structure Mediate the Link between CEO Characteristics and Firm Performance?” Management Decision 58(1):164–81. doi: 10.1108/MD-05-2018-0594.
Nguyen, Thao, Min Bai, Yang Hou, and Manh Chien Vu. 2021. “Corporate Governance and Dynamics Capital Structure: Evidence from Vietnam.” Global Finance Journal 48:100554. doi: 10.1016/j.gfj.2020.100554.
Nofiani, Rika, and Barbara Gunawan. 2018. “Pengaruh Kepemilikan Institusional, Free Cash Flow (FCF), Dan Investment Opportunity Set (IOS) Terhadap Kebijakan Hutang (Studi Empiris Pada Perusahaan Manufatur Yang Terdaftar Di Bei Tahun 2014-2016).” Reviu Akuntansi Dan Bisnis Indonesia 2(2):144–52. doi: 10.18196/rab.020228.
Nurkholik, and Kharirotul Khasanah. 2022. “Pengaruh Free Cash Flow, Struktur Aset, Likuiditas, Profitabilitas, Pertumbuhan Penjualan, Dan Risiko Bisnis Terhadap Kebijakan Hutang.” Dinamika Akuntansi, Keuangan Dan Perbankan 11(1):1–21.
Oktariyani, Oktariyani, and Afriyanti Hasanah. 2019. “Pengaruh Free Cash Flow, Likuiditas Dan Kepemilikan Asing Terhadap Kebijakan Hutang Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia.” Journal of Applied Managerial Accounting 3(1):20–35. doi: 10.30871/jama.v3i1.928.
Owusu, Andrews, Frank Kwabi, Ernest Ezeani, and Ruth Owusu-Mensah. 2022. “CEO Tenure and Cost of Debt.” Review of Quantitative Finance and Accounting 59(2):507–44. doi: 10.1007/s11156-022-01050-2.
Rezki, Yuliana, and Hairul Anam. 2020. “Pengaruh Kepemilikan Manajerial, Pertumbuhan Perusahaan Dan Free Cash Flow Terhadap Kebijakan Utang.” JURNAL AKUNTANSI DAN BISNIS : Jurnal Program Studi Akuntansi 6(1):77–85. doi: 10.31289/jab.v6i1.3010.
Setyawan, Angelia Meysi, and Dan Devie. 2017. “Pengaruh CEO Duality Terhadap Firm Value Dengan Financial Performance Sebagai Variabel Intervening.” Business Accounting Review 4(1):325–36.
Sudana, I. Made, and Elka Dwiputri. 2018. “Karakteristik CEO Dan Kinerja Perusahaan Non-Keuangan Yang Teraftar Di Bursa Efek Indonesia.” Jurnal Manajemen Dan Bisnis Indonesia 5(3):299–314. doi: 10.31843/jmbi.v5i3.169.
Sulistiani, Ana, and Linda Agustina. 2019. “Analysis Journal Determinants of Debt Policy with Profitability as a Moderating Variable.” Accounting Analysis Journal 8(3):184–90. doi: 10.15294/aaj.v8i3.35181.
Tanjaya, Felix Leonardo, and Eko Budi Santoso. 2020. “ASOSIASI KARAKTERISTIK CEO TERHADAP POTENSI KESULITAN KEUANGAN PERUSAHAAN.” Media Akuntansi Dan Perpajakan Indonesia 1(number 2):153–68.
Tarigan, Vitryani, Djuli Sjafei Purba, and Sri Martina. 2022. “Pengaruh Ukuran Perusahaan , Likuiditas Dan Profitabilitas Terhadap Kebijakan Hutang Pada Perusahaan Pertambangan.” Owner: Riset & Jurnal Akuntansi 6:4291–4300.
Tinga, Irene Wei Kiong, Noor Azlinna Binti Azizan, and Qian Long Kweh. 2015. “Upper Echelon Theory Revisited: The Relationship between CEO Personal Characteristics and Financial Leverage Decision.” Procedia - Social and Behavioral Sciences 195:686–94. doi: 10.1016/j.sbspro.2015.06.276.
Unnuriyah, Ulfah, and Ira Septriana. 2021. “Pengaruh Likuiditas, Profitabilitas, Dan Pertumbuhan Penjualan Terhadap Kebijakan Hutang (Studi Empiris Pada Perusahaan Food and Beverage Yang Terdaftar Di BEI).” ECONBANK: Journal of Economics and Banking 3(2):87–96. doi: 10.35829/econbank.v3i2.180.
Zurriah, Rezki. 2018. “Pengaruh Free Cash Flow Dan Kepemilikan Manajerial Terhadap Kebijakan Hutang (Studi Pada Perusahaan Yang Terdaftar Di Jakarta Islamic Index).” JURNAL AKUNTANSI DAN BISNIS : Jurnal Program Studi Akuntansi 4(2):31. doi: 10.31289/jab.v4i2.1664.
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