FACTORS AFFECTING COST OF EQUITY
Main Article Content
Abstract
This research aims to examine the effect of board commissioners' effectiveness, family ownership, and audit quality on the cost of equity in the Infrastructure sector in Indonesia. The Infrastructure sector in Indonesia lags behind other countries, necessitating greater attention. The sample for this research, based on the purposive sampling strategy, consists of 34 infrastructure firms (168 observations) listed on Indonesian Stock Exchanges for the period 2018 to 2022. These factors include the effectiveness of the board of commissioners (as measured by the good, fair, and poor ratings [DEKOM]), family ownership (as measured by family control rights [FAMOWN]), and audit quality (as measured by the big four KAP and non-big four [QUAD]). SPSS 23 was used to test the data processing in this research. This research analysis uses a multiple regression analysis approach. The first hypotheses is that the effectiveness of the board of commissioners has a negative effect on equity costs. The second hypotheses is that family ownership has a positive effect on equity costs. Lastly, the third hypotheses is that audit quality has a negative effect on equity costs. The findings of this research indicate that the effectiveness of the board of commissioners and family ownership have no effect on the cost of equity. However, audit quality has a positive and significant impact on the cost of equity. Hence, it can be concluded that the first, second, and third hypotheses in this study are rejected.
Article Details

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
Agung Prasetyo, A. (2022). Meminimalisir Asimetri Informasi Melalui Pelaporan (Disclosure) Laporan Keuangan. Transekonomika: Akuntansi, Bisnis dan Keuangan, 2(1), 45-52. https://doi.org/10.55047/transekonomika.v2i1.104
Alam, Darsyaf dan I Ketut Suryanawa. 2017. Pengaruh Kompetensi, Independensi, Akuntabilitas, dan Due Profeesional Care pada Kualitas Audit. E-Jurnal Akuntansi Universitas Udayana. Vol.21.3.pp 2282-2310.
Amelia, Viona Rizqi dan I Ketut Yadnyana. 2016. “Pengaruh Good Corporate Governance, Kepemilikan Keluarga dan Kepemilikan Institusional pada Biaya Ekuitas Perusahaan Manufaktur”. E-Jurnal Akuntansi Universitas Udayana, Vol. 16. 2.
Anas, Dimas E. A. F., Sutrisno, T., dan Rahman, A. Fuad. 2018. Pengaruh Rotasi Audit dan Leverage terhadap Kualitas Audit dengan Ukuran Perusahaan sebagai Variabel Moderasi. Jurnal Ilmiah Akuntansi Peradaban, Vol. 4.
Apriliani, F., & Harto, P. (2017). PENGARUH STRUKTUR KEPEMILIKAN TERHADAP COST OF CAPITAL DENGAN VOLUNTARY DISCLOSURE SEBAGAI VARIABEL INTERVENING. Diponegoro Journal of Accounting, 5(4).
Babatunde, M.A. dan O. Olaniran. 2009. “The Effect of Zinternal and External Mechanism on Governance and Performance of Corporate Firms in Nigeria”. Jurnal Corporate Ownership & Control. Vol. 7. Issue 2.
Bodie, Kane, & Marcus. (2014). Investment. Tenth Edition. New York: McGraw-Hill Education.
Butar, S. B. (2019). Board of commisioners composition, governance committee, and stock price synchronicity. Jurnal Akuntansi Dan Keuangan, 21(1), 1-11.
Cahya Ningrum, Lutfiana dan Setiawati, Erma (2022). Kepemilikan Keluarga, Hubungan Politik, dan Family Aligned Board Terhadap Impleemntasi Tata Kelola Perusahaan. Jurnal Ekonomi, Manajemen dan Akuntansi, Volume 6 No.1: 18-29.
Coffee, John C., ' Dispersed Ownership: The Theories, the Evidence, and the Enduring Tension between “Lumpers” and “Splitters”', in Dennis C. Mueller (ed.), The Oxford Handbook of Capitalism, Oxford Handbooks (2012; online edn, Oxford Academic, 21 Nov. 2012), https://doi.org/10.1093/oxfordhb/9780195391176.013.0017
Coffie, W., Bedi, I., & Amidu, M. (2018). The effects of audit quality on the costs of capital of firms in Ghana Structured. Journal of Financial Reporting and Accounting, 16(4), 639-659.
Corporate Governance Perception Index. 2008. Good Corporate Governance dalam Perspektif Manajemen Stratejik. The Indonesian Institute for Corporate Governance.
Desiliani, N., & Meiranto, W. (2014). Pengaruh Ukuran Kantor Akuntan Publik, Spesialisasi Industri Auditor Dan Audit Tenure Pada Biaya Modal Ekuitas (Studi Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2010 – 2012). Diponegoro Journal of Accounting, 0, 222-229.
Dianty, Vera, Sidharta Utama, Hilda Rossieta, dan Sylvia Veronica. 2012. Pengaruh Kepemilikan Pengendali Akhir Terhadap Transaksi Pihak Berelasi. Simposium Nasional Akuntansi. Volume 15.
Falatifah, M., & Hermawan, A. A. (2021). Board of directors effectiveness, voluntary integrated reporting and cost of equity: Evidence from oecd countries. International Journal of Business and Society, 22(1), 443-460. https://doi.org/10.33736/IJBS.3188.2021
Fernando, G. D., Abdel Meguid, A. M., & Elder, R. J. (2010). Audit quality attributes, client size and cost of equity capital. Review of Accounting and Finance, 9(4), 363-381. https://doi.org/10.1108/14757701011094571
Hidayati, W., & Diyanty, V. (2018). Jurnal Akuntansi dan Auditing Indonesia Pengaruh moderasi koneksi politik terhadap kepemilikan keluarga dan agresivitas pajak. Jurnal Akuntansi Dan Auditing Indionesia, 22(1), 46–60.
Jensen, M., C., dan W. Meckling, 1976. “Theory of the firm: Managerial behavior, agency cost and ownership structure”, Journal of Finance Economic 3:305- 360. https://doi.org/10.1016/0304-405X(76)90026-X
Juniarti, C., & Yuyetta, E. N. A. (2021). Pengaruh Konflik Agensi Terhadap Profitabilitas Perusahaan Keluarga Dengan Non-Family Affiliated Management Sebagai Variabel Moderasi (Studi Empiris pada Perusahaan Keluarga di Bidang Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2018). Diponegoro Journal of Accounting, 10(1).
Kurniawati, Zulfa., Marfuah. 2014. Pengaruh Penerapan Corporate Governace terhadap Biaya Ekuitas dan Biaya Utang pada Perusahaan Manufaktur di Indonesia. Jurnal Bisnis dan Ekonomi. Vol. 5, (No. 2), Hal 195-206.
La Rosa, Bernini dan Verona. 2019. Pengaruh Kualitas Laba Terhadap Cost of Equity Capital Dengan Asimetri Informasi Sebagai Integrasi Variabel Intervening Dan Moderating. Meditari Accountancy Research Vol. 28 No. 3.
Lainatus Shifa, Hikmah Rizky. 2018. Ownership Structure and the Cost of Equity in the European Context. Pekbis Jurnal. Volume 10 No.3: 236-253.
Le, Ben dan Hearn Mooore, Paula. 2021. The Impact of Audit Quality on Earnings Management and Cost of Equity Capital: Evidence from a Developing Market. Journal of Financial Reporting and Accounting Vol. 21 No. 3: 695-728.
Leuz, C. and R.E. Verrechia. 2004. “Firms’ Capital Allocation Choices, Information Quality, and the Cost of Capital.” Working Paper, The Wharton School, University of Pennsylvania, 2004: 1-22.
Madyan, M., Meidiaswati, Sasikirono & Herlambang. (2019). Family Control, Institutional Ownership, Dan Kebijakan Dividen Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Reviu Akuntansi dan Keuangan, 9(1), 87-95.
Mahrani, M. dan Soewarno, N. 2018. The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research. Volume 3 No.1: 41-60.
Mazzotta, Romilda & Veltri, Stefania. (2012). The Relationship between Corporate Governance and The Cost of Equity Capital: Evidence from The Italian Stock Exchange. Springer Science Business Media.
Nainggolan, I. P. M., & Pratiwi, M. W. 2017. Analisis Faktor-Faktor yang Mempengaruhi Kinerja Keuangan Perusahaan. Media Ekonomi dan Manajemen, 23(1), 80–96.
Rebecca, Yulisa. 2012. Pengaruh Corporate Governance Index, Kepemilikan Keluarga dan Kepemilikan Institusional, Kebijakan Dividen Pertumbuhan Perusahaan, Free Cash Flow dan Profitabilitas Terhadap Kebijakan Hutang.
Rivandi, M., & Marlina. (2019). Pengaruh Corporate Governance Dalam Memprediksi Biaya Ekuitas Dengan Pendekatan Model Ohlson. El Barka: Jurnal of Islamic Economic and Business, 2(2), 222–244. https://doi.org/10.21154/elbarka.v2i2.1751
Ross, S.A., Westerfield, R.W. and Jordan, B.D. (2010) Fundamentals of Corporate Finance. Tata McGraw Hill Education, Inc., New York.
Saadah, Naili. 2018. Pengaruh Kualitas Audit Terhadap Pengungkapan Kecurangan Laporan Keuangan Perusahaan. Jurnal Ekonomi dan Bisnis. 21(01): 18-27.
Salim, M. A., & Raharja, S. (2021). The Effect Of Audit Fee And Audit Effort On Audit Quality (In Manufacturing Companies Listed On Indonesia Stock Exchange 2017-2019). Diponegoro Journal of Accounting, 10(4).
Sari, Intan Christiana, and Vera Diyanty. 2014. “Pengaruh Efektifitas Dewan Komisaris Dan Pengendali Keluarga Terhadap Biaya Ekuitas.” Jakarta: Universitas Indonesia: 1–26.
Setiany, E., Suhardjanto, D., Lukviarman, N., & Hartoko, S. (2017). Board Independence, Voluntary Disclosure, and the Cost of Equity Capital. Review of Integrative Business & Economics Research, 6(4), 389 399.
Susanto, A., & Fransiska, F. (2022). PENGARUH KUALITAS AUDIT TERHADAP BIAYA MODAL PERUSAHAAN: KASUS PERUSAHAAN DI BURSA EFEK INDONESIA. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(3), 1479-1497. https://doi.org/10.31955/mea.v6i3.2504
Tamara, M. T., S. Astuti, dan Sutoyo. 2022. Pengaruh Good Corporate Governance, Profitabilitas, dan Ukuran Perusahaan Terhadap Manajemen Laba pada Perusahaan. Kompartemen: Jurnal Ilmiah Akuntansi, 20 (2): 329-340.
Tintia, Dilla dan Muslih, Muhammad. 2020. Pengaruh Komisaris Independen, Kepemilikan Institusional, Frekuensi Pertemuan Komite Audit Dan Intelectual Capital Disclosure Terhadap Biaya Ekuitas (Studi Pada Perusahaan Jasa Sektor Infrastruktur, Utilitas, dan Transportasi yang Terdaftar pada Bursa Efek Indonesia (BEI) periode 2014-2018. E-proceeding of Management. Vol. 7 No. 2: 2993-3006.
Trisnawati, Ita. 2018. “Faktor Determinan Pemilihan Auditor Eksternal Yang Berkualitas”. Jurnal Bisnis Dan Akuntansi 17 (2), 112-24. https://doi.org/10.34208/jba.v17i2.22
Uly Agnesia, Maria. 2020. Analisis Determinan Atas Kualitas Audit. Jurnal Riset Akuntansi dan Auditing, Vol. 7 Edisi 1.
UU No. 40 Tahun 2007 tentang Perseroan Terbatas.
Veno, Andri dan Sasongko Noer. 2016. “Pengaruh Asimetri Informasi Terhadap Manajemen Laba dengan Good Corporate Governance sebagai Variabel Moderasi”. Jurnal Ekonomi Manajemen Sumber Daya. Vol. 18 No.1. Universitas Muhammadiyah Surakarta. Indonesia.
Wulandari, Agustin dan Widyawati, Dini. 2019. Pengaruh Kinerja Keuangan Terhadap Nilai Perusahaan Dengan Good Corporate Governance Sebagai Variabel Moderasi. Jurnal Ilmu dan Riset Akuntansi. Volume 8 No.1.
Zabrina, A., & Jacobus Widiatmoko. (2022). Pengaruh Gcg Terhadap Kualitas Laba Dan Dampaknya Pada Biaya Ekuitas Pada Perusahaan Barang Konsumsi. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(Spesial Issue 4), 2004–2021. https://doi.org/10.32670/fairvalue.v4iSpesial Issue 4.1031