EFFECT OF FINANCIAL LEVERAGE AND FOREIGN OWNERSHIP ON CORPORATE SUSTAINABILITY – ROLE OF CORPORATE GOVERNANCE AS MEDIATOR

Publication Date : 01/09/2019


Author(s) :

PAULUS TANGKE, DJABIR HAMZAH, ABDUL HAMID HABBE, KARTINI.


Volume/Issue :
Volume 2
,
Issue 3
(09 - 2019)



Abstract :

This study aims to test the effect of financial leverage and foreign ownership to corporate sustainability with corporate governance as a mediation. This study is an empirical research using secondary data in the form of non-financial company data listed in the Indonesia Stock Exchange period 2011-2015. Based on the results of company sample selection conducted by purposive sampling method, it was elected 132 companies or 660 data years of the company. Researchers used path analysis in this study using SPSS statistical test tool Version 24 with regression. The study applied stakeholders theory as the main theory with the support from theory of legitimacy. Analysis method used in this research is the path analysis by using a multiple regression statistical test lat - SPSS Version 24. The results of this study indicate that financial leverage have a negative effect and significant on corporate governance and corporate sustainability. While foreign ownership has no effect on corporate governance but has negative and significant influence on corporate sustainability. Corporate governance in financial leverage relationships with corporate sustainability in this study were classified as type no mediation as well as in foreign ownership relationships with corporate sustainability, corporate governance variables as the type declassification of no mediation.


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