FINANCIAL PERFORMANCE ANALYSIS BASED ON PROFITABILITY RATIO (Study at PT Astra International Tbk Period 2009-2018)
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Psychosocial Rehabilitation, Vol.24, Issue 02
Abstract
Islamic bonds or commonly known as "sukuk" is one of the capital market instruments that is come up as one of the important components in the global Islamic financial system and has become an innovative investment instrument for recent years. The purpose of this paper is to investigate the effect of CEO power, corporate governance, auditors reputation and firm characteristic as control variables (productivity, leverage, and firm size) to the corporate Islamic bonds rating listed in Indonesia stock exchange for the period of 2013-2017. This research uses ordinal logit regression model to find out variables that has powerful effect to the corporate Islamic bonds rating which samples were taken from 11 firms that issued Islamic bonds by using purposive sampling technique. The research finding was denoted that CEO power, board size, and leverage have no effect on the Islamic bond's rating. This result was explained that CEO power is measured by CEO tenure, board size and leverage do not determine the better of corporate Islamic bonds rating. Meanwhile, auditors reputation, board commissioner, productivity and firm size have positive effect on the corporate Islamic bonds rating.
Description
Keywords
Islamic Bonds Rating, CEO Power, Corporate Governance, Auditors Reputation