Pengaruh Excess Control terhadap Cost of Capital dalam Meningkatkan Profitabilitas

Hendra Gunawan, Rani Yessi Sinaga


This study examines the effect of excess control on cost of capital seen from the profitability of the company to prove its effect on increasing the profitability of manufacturing companies. This study uses secondary data taken from the auditor's financial statements. The results show that excess control has a positive effect on cost of capital. The results of this study illustrate that capital will be good for the company if the funds are used effectively and efficiently. This research is important for companies and organizations, in order to be better in the use or utilization of capital in the company's operations. This company is only limited to manufacturing companies, so the next research is expected to be able to use samples from other industries.



excess control; cost of capital

Full Text:



Allaire, Y., & Firsirotu, M. (2009). Black Market and Business Blues. F1 Press, Montreal.

Altman. E. I. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance, 23(4), 189-209.

Ashbough, H., Collins, D. W., & Lafond, R. (2004). Corvorate Governance on the Cost of Equity Capital. Working Paper, The Social Science Research Network, Electronik library, available:

Attig, N,. Fong, W. M. Gadhoum, Y. and Lang, L. H. P. (2006). Effects of Large Shareholding on information Asymmetry and Stock Liquidity, Journal of Banking & Finance, 30(10), pp. 2875-2892.

Baek, J. S., Kang, J. K and Park, K. S. (2004). Corvorate Governance and Firm Value: Evidence from the Corean Financial Crisis, Journal of Financial Economic, 71(4), pp. 265-313.

Barontini, R. and Caprio, L. (2006). The Effect of Ownhership Structure and Family Control on Firm Value; Evidence from Continental Europe. Eropean Financial Management, 12(5), pp. 689-723.

Bebehuk, L., Krakman, R, and Triantis, G. (2000). Stock Pyramids Cross–Ownhwership, and Dual Class Equity; The Creation and Agency Cost of Separating Control from Cash Flow Rights. Randall, K.M. (Ed), Concentrated Corporate Ownershipe, University of Chicago Press, Chichgo, II, pp. 295-315.

Bierman, H. Jr. (1993). Capital Budgeting in 1992; a survey. Financial management, 22(3), pp. 24.

Bhojraj, S and Sengupta, P. (2003). Effect of Corvorate Governance on Bond Ratings and Yields; the Role of Institutional Investors and Outside Directors. Journal of Business, 76(3), pp. 455-475.

Booth, L,. (2001). Equity Market Risk Premiums in the US and Canada. Canadion Investment Review, Fall, pp. 4-43.

Boubakri, N., Bozec, C. (2004). Concentration des Droits de Propiete, Separation Entre Structure, and Firm Value: Evidence from Canada. Journal of Empirical Legal Studies, 8(2), pp.358-383.

Bozec, Y. and Laurin. C. (2008). Large Shareholder Entrenchment and Performance; Empirical Evidence from Canada. Journal of Business Finance and Accounting, 35(1), pp. 25-49.

Gunawan, H., & Ramadhani, W. (2018). How Intellectual Capital Effects Firm’s Financial Performance. Journal of Applied Accounting and Taxation, 3(1), 1-8.



  • There are currently no refbacks.

Published by
Department of Accounting, Faculty of Economic and Business,
Syarif Hidayatullah State Islamic University

Jl. Ir. H. Juanda no 95, Ciputat 15412, Tangerang Selatan, Banten, Indonesia
Phone:+62(21) 7493318, Fax.: +62 (21) 7496006. e-Mail: 

View My Stats License

This work is licensed under CC BY-SA