Oil Price and Leverage for Mining Sector Companies in Indonesia

Authors

  • Endri Endri Universitas Mercu Buana, Jakarta, Indonesia
  • M. Iqbal Rasyid Supeni
  • Yanti Budiasih
  • Matdio Siahaan
  • A. Razak
  • Sudjono Sudjono

Abstract

The research was conducted to prove empirically the impact of oil prices, interest rates, profitability, company size, and liquidity on leverage in mining sector companies in Indonesia. The study population was 47 companies in the mining sector, using the purposive sampling method, the research sample was selected as many as 32 companies in a period of 5 years from 2014 to 2018 so that 160 observations were obtained. The data analysis method used a random-effects model selected from panel data regression. The empirical findings show that profitability, liquidity, world oil prices, and interest rates have a negative effect on leverage, while firm size has no impact. The empirical findings of this study can help the mining sector industry in Indonesia in making decisions about corporate debt policies that are significantly influenced by oil prices, profitability, liquidity, and interest rates to create optimal debt policies.Keywords: Oil Price, Leverage, Mining Sector Companies, IndonesiaJEL Classifications: G22, E22, E44, Q43DOI: https://doi.org/10.32479/ijeep.11237

Downloads

Download data is not yet available.

Author Biography

Endri Endri, Universitas Mercu Buana, Jakarta, Indonesia

Magister  Manajemen

Downloads

Additional Files

Published

2021-06-08

How to Cite

Endri, E., Supeni, M. I. R., Budiasih, Y., Siahaan, M., Razak, A., & Sudjono, S. (2021). Oil Price and Leverage for Mining Sector Companies in Indonesia. International Journal of Energy Economics and Policy, 11(4), 24–30. Retrieved from https://mail.econjournals.com/index.php/ijeep/article/view/11237

Issue

Vol. 11 No. 4 (2021)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.