Effect of Shareholding Structure, Internal Factors, External Factors on Capital Structure and Value of the Company in Manufacturing Company in Indonesia Stock Exchange

Abstract

This research examined the influence of ownership structure, internal factor, external factor and capital structure on value of the manufacturing firm in Indonesia Stock Exchange. This is argue that unlike the agency problem in developed stock market, the agency problem in Indonesia Stock Exchange is the divergence of interest between the minority holders and majority holders. This is because the Indonesia Stock Exchange is characterized among other things, by the domination of large shareholder. It is hypothesis that: there are the impact of ownership structure, internal factor, external factor on capital structure, there are the impact of ownership structure, internal factor, and external factor on value of the firm, there are the impact of capital structure on value of the firm. Results of this study hope to contribute theoritically and practically. Theoretically contribution is bounded to examine the Agency Theory, Trade off Theory and Signalling Theory. Results of the study to indicate that practice public company In Indonesia Stock Exchange is not support the Agency Theory and support Trade off theory and Signaling theory. Practical contribution is bounded in the institution, like BAPEPAM and The Indonesian Stock Exchange Management.