The effect of Good Corporate Governance and The Level of Voluntary Disclosure on Cost of Debt (An Empirical Study of Manufacturing Companies Registered on The Stock Exchange)

The aims of this study were to determine (1) the effect of the independent commissioner on cost of debt, (2) the effect of managerial ownership on the cost on debt (3) the effect of institutional ownership on the cost of debt and (4) the effect of voluntary disclosure on cost of debt at a manufacturing company registered on the Indonesia Stock Exchange.
This study was classified as causative study. The population of this study was manufacturing company registered on the Stock Exchange in 2008 until 2010. A total of 18 companies were enrolled in this study, determined by the purposive sampling method. The data obtained from the Indonesian Capital Market Directory (ICMD) and www.idx.co.id. Data analysis techniques using double regression test, analyzed by t test with significance alpha score 5%.
From this study we can conclude that (1) independent commissioner had adverse affect on cost of debt, shown by significance level of 0.019 <0.05, β coefficient is negative,-0,588 (2) managerial ownership did not affect the cost of debt,shown by significance level of 0.105> 0.05, β coefficient is positive, 0.288(3) institutional ownership did not affect the cost of debt, shown by significance level of 0.001 <0.05, β coefficient is positive, 0.723(4) voluntary disclosure did not affect on the cost of debt with significance level of 0.000 <0.05, the value of the coefficient β is positive, 1.165.
In this study suggested: (1) For a company can be used as consideration for the management of the company to implement good corporate governance and voluntary disclosure because it will help in reducing the cost of debt owned by the company. (2) For further study in order to take different samples with writers such as all companies listed on the Stock Exchange, replacing the voluntary disclosure items with voluntary disclosure items that are used in other prior research, and extend the period of study (3) For the investor and creditors can be used as a material consideration in making investment decisions and granting loans to companies