STUDY OF FACTORS AFFECTING THE ATTITUDE OF DEBT FINANCING DECISION

• Main Authors: Satoto S.H., Nilmawati, Nurrohim K.P.H.
• Format: Article
• Language: English
• Published: Russian Journal of Agricultural and Socio-Economic Sciences 2020-02-01
• Series: Russian Journal of Agricultural and Socio-Economic Sciences
• Subjects: orientation of economic goals; positive experience with creditors; financial knowledge; need for control; family commitment
• Online Access: https://rjoas.com/issue-2020-02/article_13.pdf

This study aims to examine the influence of the variables of economic goal orientation, experience with creditors, financial knowledge, and family control to explain financial attitudes related to debt financing decisions with family commitment as a moderating variable and age and size of the company as control variables. The respondents in this study consisted of 123 owners or managers of small and medium businesses in the Sleman Regency of Yogyakarta. The test results show that the orientation of economic goals, experience with creditors, financial knowledge, and family control have a positive and significant influence on attitudes related to debt financing decisions. This research also proves that the moderating variable of family commitment can strengthen the positive effect of family control on managers' attitudes in debt financing decisions.