Review of Analysis of the Implementation of Good Corporate Governance and Information Asymmetry And the Impact on Cost Capital

Abstract

In this research, explaining and explaining the implementation of Good Corporate Governance and Information Asymmetry that occurs and its impact on Cost Capital, the researcher conducted a theoretical study and previous literature review where the theory used was Agency Theory which concerns the occurrence of information asymmetry. Where the theory used will help in explaining the impact of implementing ood Corporate Governance and information asymmetry and making predictions on the size of capital costs that occur. This research will also examine previous research which provides an overview regarding the Implementation of Good Corporate Governance and Information Asymmetry that occurs and its impact on Cost Capital. This research uses a qualitative descriptive approach by conducting theoretical studies and literature reviews by conducting literature studies and collecting journals via websites and the internet. The research methodology used is purely through analysis of existing literature and theoretical studies related to the topics discussed in the research. Then the researcher conducts discussions and provides conclusions through theoretical analysis and research results that support obtaining good theoretical research results. related to the themes discussed in the research. Through the results of theoretical studies and literature reviews, the results were found with the conclusion that the implementation of Good Corporate Governance is able to provide structural supervision which will reduce the impact of agency costs so that Good Corporate Governance plays a role in minimizing the Cost of Capital in a company, information asymmetry which often occurs can increase the cost of capital which must be charged by the company.