CORPORATE GOVERNANCE, LIQUIDITY AND MATURITY ANALYSIS ON BONDS YIELD WITH BOND RATINGS AS INTERVENING VARIABLES IN COMPANIES LISTED ON IDX

Abstract

The study aims to examine how corporate governance, liquidity and maturity affect bonds yield with intervening variable such as bond ratings. The data using secondary data which is annual data from companies whose bonds are outstanding during the 2016-2018 period. The sampling technique using purposive sampling method and the sample consists of 285 corporate bonds. The analysis technique using path analysis and the data was processed using the AMOS Structural Equation Modeling (SEM) program. The results showed that there is no effect of corporate governance on bonds yield, while the effect of corporate governance on bond ratings is positive. For liqudity, there is no effect of liquidity on bonds yield, while the effect of liquidity on bond ratings is significant negative. For maturity, the effect of maturity on bonds yield is significant positive and also there is positive effect of maturity on bond ratings. The effect of bond ratings on bonds yield is significant negative. These results indicate that the ratings in this study can mediate corporate governance, liquidity and maturity variables on bond yields. The result also showing that bond ratings fully mediate the effect of corporate governance and liquidity on bonds yield while for maturity, bond rating partially mediated the effect of maturity on bonds yield.

Keywords

• corporate governance
• liquidity
• maturity
• bond ratings
• bonds yield