ABSTRACK
Irma Yuliani 2015, The Effect of Leverage and Firm Size on Agency Cost
and Firm Performance ( Studies on the Company in the Indonesia Stock
Exchange Period 2009-2013), under the guidance of Dr. H. Ardi Paminto, SE.,
MS as a supervisior I and Herry Ramadhani, SE., MM as a lecturer Sepervisor II.
Thr purpose of this research is the examine the effect of leverage and firm
size on agency cost and firm performance of the company and to the indirect
effect leverage and firm size on firm performance by agency cost. The statistic
method which used to test hypotheses is path analys and Classical Asumption
Test and hypotheses testing or R2 Test, Test T, and Test F. The process was
selected to sample is pyppuse sampling methode and the result 10 companies
were sampled.
After performing the clasical assumption test with two structural equation
model, the two models meeet the criteria to do multiple regresion reserch. The
result show that; insignificant effect of leverage and negatif significant of firm size
on agency cost; negatif significant of agency cost on firm size; negatif significant
of leverage and insignificant on firm size on firm performance; insignificant of
leverage on firm performance by agency cost and negatif significant indirect
effect of firm size on firm performance by agency cost.
Keyword: Leverage, Firm Size, Agency Cost, firm Performance and Path
Analys.