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Influence of Audit Quality, Pattern of Loans Concentration and Company Size to Banking Loans (Agency Problem of Creditor Debtor at Manufacture Company in Indonesia)

Author

Listed:
  • Ria Ria

    (Doctoral Program of Economy Trisakti University, Indonesia,)

  • Muhammad Nuryatno

    (Lecturer of Universitas Nasional, Indonesia.)

Abstract

This study aims to analyze the influence of Audit Quality, Loan Concentration Pattern, and Company Size to Large of Loans. This research uses quantitative method with regression analysis model by stratified random sampling based on subsector strata in manufacturing company that go public in Indonesia Stock Exchange. This study shows that there is a positive and significant correlation between audit qualities to the loans, there is a negative and significant correlation between loan concentration patterns to the loans, there is a positive and significant correlation between company sizes on the loans and ROA, current ratio and age of the company can be a control variable to the loans

Suggested Citation

  • Ria Ria & Muhammad Nuryatno, 2018. "Influence of Audit Quality, Pattern of Loans Concentration and Company Size to Banking Loans (Agency Problem of Creditor Debtor at Manufacture Company in Indonesia)," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 172-176.
    • Handle: RePEc:eco:journ1:2018-04-22
    as

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    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    2. Michael R. Roberts & Amir Sufi, 2009. "Control Rights and Capital Structure: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 64(4), pages 1657-1695, August.
    3. Armstrong, Christopher S. & Guay, Wayne R. & Weber, Joseph P., 2010. "The role of information and financial reporting in corporate governance and debt contracting," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 179-234, December.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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