Abstract :
The purpose of this study is to test the effect of managerial and institusional
ownership to corporate debt policy (debt ratio). Control variables are size, asset, and dummy
variable.This research is based on the previous research by Jalu (2008), which found that both
managerial and institusional ownership was important in explaining their effect to the debt
policy.
This research is an empirical study, which focused on all firm listed on Jakarta Stock
Exchange, except financial and insurance firms for period 2009 and 2010. The method of
analysis is by using cross sectional.The method of data collection is purposive sampling.
There are 77 firms in two years observation.The statistical method used in this research is
multiple regression. The result of this research shows that managerial ownership does not has
an effect towards debt policy. In the order hand, institutional ownership has influenced the
debt policy. Keywords : Managerial ownership, Institusional ownership, Debt policy.