HERDING PADA KEPUTUSAN STRUKTUR MODAL

ABSTRACT: In our study, we test the existence herding behavior on capital structure decisions of firms listed in the Indonesia Stock Exchange. First, we examine the the reputational herding hypothesis which explain how firms within an industry choose theirs level of debt and equity. We find support for this hypothesis and conclude that leader equity ratio influences those of followers. We next hypothesize that firms may make capital structure decisions based on their previous capital structure decisions. We also find evidence to support this informational herding.
Keywords: herding behavior, capital structure, reputational herding, informational herding
Penulis: Anny Laila Safithri
Kode Jurnal: jpmanajemendd100143
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