PERAN KOMITE AUDIT PADA PENENTUAN STRUKTUR MODAL

Abstract

Debt is part of the capital structure other than share capital and is a source of external funding for expansion needs. However, the use of debt requires consideration of financial difficulties. This study aims to analyze the role of the audit committee in determining the capital structure of companies listed as LQ45 continuously on the Indonesia Stock Exchange during period 2019 to 2021. Empirically, this study proves that the intensive role of the audit committee can reduce the amount of debt used when the company experiences an increase in profitability. The possible cause of this condition is due to the professional judgment of the audit committee on the consequences of the company's sustainability, especially during the Covid-19 pandemic