PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP BIAYA EKUITAS DAN BIAYA UTANG

Abstract

BSTRACT
This study aims to examine the effect of corporate governance on cost of
equity and cost of debt. Elements of corporate governance used are corporate
governance index, effectiveness of board commissioners, and effectiveness of audit
committee. The samples of this study are 40 public companies listed on Corporate
Governance Perception Index (CGPI) for period 2012-2015.
The result of this study show that the quality of corporate governance as
measured by corporate governance index have a signicant negative impact on cost of
equity and cost of debt. The effectiveness of board commissioners has a significant
negative effect on cost of equity and cost of debt. The effectiveness of audit committee
has a significant negative effect on cost of equity and cost of debt.
Keywords: corporate governance index, the effectiveness of board commissioners,
the effectiveness of committee audit, cost of equity, cost of debt