This study aimed to analyze the effect of the expropriation risk by controller shareholders and corporate
governance (GCG) to the use level of bank loan owned by the company. The samples used in this study were the
data 226 manufacturing companies listed in Indonesia Stock Exchange in period 2010-2012. The results
showed that the magnitude of expropriation risk that could be done by controlling shareholders adversely
affected the level of bank loan. This showed two things: in making loans to the company, banks considered the
possibility of the expropriation. The companies that had the expropriation risk would have less loan to the
bank because the company avoided scrutiny which was higher than banks. This study could not prove the
influence of corporate governance on the level of bank loan. The result on the audit quality variable showed a
positive correlation between KAP size and bank loan levels.