Inter-industry has various capital structures to take advantage of growth opportunities due to agency differences and information asymmetric problems. This research aims to analyze: (1) the differences in leverage between industries; (2) the impact of shareholders-debtholders conflict and information asymmetric on growth opportunities. The findings show that there are differences in leverage between industries. However, they are relatively stable and not excessive for assets to prevent conflicts between managers and shareholders and debtholders. Equity is also not used to utilize growth because it is used to reduce the discretionary power (dilution) of shareholders. As a result, the use of opportunities and growth is limited.
Keywords:
Subject: Business, Economics and Management - Accounting and Taxation
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
Preprints.org is a free preprint server supported by MDPI in Basel, Switzerland.