Board Characteristics and Capital Structure Decision During Covid-19 Pandemic in the Industrial Sector Company
Ifa Nurmasari (a*), Gatot Nazir Ahmad (b), Rida Prihatni (b).

a*) Doctoral Program, Jakarta State University
Jl. R.Mangun Muka Raya No.11, Jakarta Timur, Indonesia.
b) Jakarta State University

Abstract

Covid-19 pandemic entered Indonesia around March 2020 according to the official announcement by the government. The pandemic caused changes in various sectors of life, including the economic sector. A lot of industrial sector companies in Indonesia suffer losses. Therefore, the company needs the right financing decisions. This study aims to determine how the board characteristics influence capital structure decisions during the covid-19 pandemic. Capital structure is proxied by the variable debt to equity ratio. Meanwhile, the board characteristics are proxied by board size, women CEO, gender diversity, and board independent variables. This study uses data from industrial sector companies listed on IDX, from 2020 to 2021. The data is processed using eviews software, with multiple linear regression models. The results of the study indicate that the characteristics of the board in industrial sector companies have a significant influence on capital structure decision-making. Partially, only an independent board does not affect capital structure.

Keywords: board characteristics, capital structure, covid-19 pandemic

Topic: Financial