Effect of Good Corporate Governance, Company Size, and Voluntary Disclosure on Cost of Debt in Healthcare Companies Listed on the Indonesia Stock Exchange (Period 2017 - 2021)

Author:

Alhady M A,Risanty

Abstract

Abstract This research takes the role of determining which factors can reduce the cost of debt in health companies listed on the Indonesia Stock Exchange. The sample observed in this study consists of 14 companies chosen by purposive sampling out of the population of 24 health corporations on the Indonesia Stock Exchange. The covid-19 pandemic caused an economic contraction, this increased debt financing. Debt that is not managed properly is reflected in the expansion in requests for Postponement of Debt Payment Obligations (PKPU), PKPU can later be a sign that the company is on the verge of bankruptcy. Due to this risk, there is an urgency when a health company goes bankrupt, the wider community will be affected because companies that provide offers related to health services will be limited and increase in the price of available health services. This phenomenon can threaten economic sustainability for the whole society. The determination of the study demonstrates that voluntary disclosure and partially independent boards of commissioners have a considerable detrimental impact on the cost of debt. The cost of debt, in contrast, is unaffected by management ownership, institutional ownership, or company size.

Publisher

IOP Publishing

Subject

General Medicine

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