The Effect of Asymmetry Information and Profit Management Against Cost of Capital Equity in the Company Manufacturing Registered in Bursa Efek Indonesia

Abstract

The research aim is to know the capital equity influenced by Asymmetry Information and Profit Management. The research method used in the research is the explanatory method (Explanatory Research). The population is 193 companies and the sample is 84 companies. The research is the on-the year 2018 up to 2020. The research results have demonstrated that Asymmetry Information influence is positively significant to the Cost of Capital Equity. Profit Management has no significant effect on the Cost of Capital Equity. Based on the test simultaneously F-count Asymmetry Information and Profit Management effect on the Cost of Capital Equity. The impact investors must be meticulous in seeing the accrual information presented in the company financial statements related to profit management practices to reduce the risk of losses borne by the investor.