Badingatus Solikhah, Jariyah
This study focuses on investigating the effect of block ownership, board of director diversification, duality of the board of directors, independent level of board of commissionaire, audit committee effectiveness, and accounting conservatism on the cost of equity. The study examines 121 manufacturing companies listed in Indonesia Stock Exchange. The panel regression indicates that block ownership positively affects the cost of equity. Conversely, accounting conservatism has a negative effect on the cost of equity. The company is expected to increase its accounting conservatism practice as it can reduce the cost of equity. Furthermore, regulators especially Financial Services Authority should protect investors’ rights from block holder expropriation in Indonesia. Companies need to be encouraged to implement corporate governance not merely in compliance laws and regulations but for sustainable business. © 2021 by the authors; licensee Growing Science, Canada.
Department of Accounting, Faculty of Economcis, Universitas Negeri Semarang, Indonesia
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