scholarly journals Multinationality, Capital Structure, and Cost of Capital of Non-Financial Firm Listed on Indonesia Stock Exchange

2020 ◽  
Vol 3 (2) ◽  
pp. 146-159
Author(s):  
Rezza Vitriya
Keyword(s):  
Capital Structure ◽  
Multinational Firms ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Cost Of Debt ◽  
Multinational Firm ◽  
Domestic Firms ◽  
The Cost ◽  
The Impact

Multinational firms are firm that do business internationally, the higher degree of multinationality of a firm, they have more ability to get greater funding because there are more chances to get funding from foreign country. Because of that condition, multinational firms have different cost of capital with domestic firms. The main purpose of this study is to understand the impact of degree of multinationality, capital structure, firm size, profitability and growth opportunity to cost of capital. Panel data is used on this research and multiple linear regression analysis is used as analytical model. The result suggest that Indonesia multinational firms have lower cost of capital, cost of equity, and cost of debt than Indonesia domestic firms. The study found that capital structure is negatively related to cost of capital, this means that Indonesia multinational firm use more debt than Indonesia domestic firms, and so lower the cost of debt after tax and hence the cost of capital.

scholarly journals PENGARUH STRUKTUR MODAL, BIAYA EKUITAS, DAN KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN PADA BADAN USAHA MILIK NEGARA (BUMN) YANG TERDAFTAR DI BURSA EFEK INDONESIA

2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Hendry Victory Supit ◽  
Herman Karamoy ◽  
Jenny Morasa
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Equity Capital ◽  
Cost Of Equity ◽  
The Cost ◽  
The Impact ◽  
The Capital Structure

Source of corporate funding is essential to the operations of a firm. The problem that often arises is how companies choose the capital structure that could maximise the firm value but still pay attention to the wishes of investors and creditors to take advantage of the provision of funds through equity capital and debt capital. The purpose of this paper is to examine the impact of capital structure, cost of equity, and dividend policy on the firm value at State Owned Enterprises (BUMN) that are listed in the Indonesia Stock Exchange. The population in this study are all state-owned enterprises listed on the Indonesia Stock Exchange with a study period of 2009 to 2014, totaling 20 companies. Samples were selected using purposive sampling method amounted to 13 companies. The analytical method used multiple linear regression analysis and will be processed first with using classic assumption test. As for the processing of research data using SPSS version 23.0. The test results simultaneously (F test) the capital structure, the cost of equity, and dividend policy have impact on the firm value of state-owned companies in Indonesia. After the partial test (t test), capital structure has negative impact on the firm value, but the cost of equity and dividend policy concluded no impact on firm value.

scholarly journals CSR DISCLOSURE AND COST OF CAPITAL : THE MEDIATING ROLE OF EARNINGS QUALITY

2021 ◽  
Vol 16 (2) ◽  
pp. 223
Author(s):  
Chaerunnisa . ◽  
Tri Lestari ◽  
Windu Mulyasari
Keyword(s):  
Cost Of Capital ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Linear Regression Analysis ◽  
Cost Of Debt ◽  
Global Reporting Initiative ◽  
Cost Of Equity ◽  
Mediating Role ◽  
Csr Disclosure ◽  
The Cost

<p><em>This study aims to analyze the effect of CSR disclosure on the cost of capital with earnings quality as mediating variable. CSR disclosure was measured by Global Reporting Initiative (GRI) Standards. The cost of capital was measured by the cost of equity and the cost of debt. Meanwhile, earnings quality was measured by absolute abnormal accruals. The population of this research is mining companies listed on the Indonesia Stock Exchange period 2017-2019. Based on the purposive sampling method, the samples chosen are 32 companies with a total sample of 96 data. This study used multiple linear regression analysis using SPSS 25 version software and path analysis using the Sobel online calculator. This study showed that CSR disclosure has a direct negative effect on the cost of equity but does not affect the cost of debt. Firms with better CSR disclosure have better earnings quality. Earnings quality does not affect both costs of capital proxies. Earnings quality does not have a mediating role in the effect of CSR disclosure on both costs of capital proxies. </em></p>

scholarly journals The Impact of Stock Price Crash Risk on the Cost of Capital: Empirical Study from China

2021 ◽  
Vol 3 (2) ◽  
pp. 88-97
Author(s):  
Muhammad Hamza Khan ◽  
Muhammad Rizwan
Keyword(s):  
Information Disclosure ◽  
Stock Price ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Cost Of Debt ◽  
Crash Risk ◽  
Cost Of Equity ◽  
Coefficient Of Skewness ◽  
The Cost ◽  
The Impact

This study analysed the effect of Sock Price Crash Risk (SPCR) on the cost of capital in Chinese listed firms in the Shenzhen stock exchange and the shanghai Stock Exchange. A sample of 290 firms based on the highest value of assets of each firm was used. The cost of capital consists of two factors; the cost of equity (COE) and the cost of debt (COD). The SPCR is measured by using two statistics, one is NCSKEW means the negative coefficient of skewness of the firm-specific weekly returns and the second is DUVOL that means Down to-Up Volatility used to measure the crash likelihood weekly return of firm-specific and used the Modified PEG ratio model of Eston approach to measuring the cost of equity. We used panel data to run the regression model analyses. SPCR was found to have a significantly positive relationship with the cost of equity and cost of debt. Also, the sample was divided into the State-Owned enterprise (SOEs) and Non-State-Owned enterprises (NSOEs) for comparison. The results show that the impact of SPCR on the COE and COD is stronger in SOEs than NSOEs. The regulators need to improve and strengthen the development of laws and regulations related to company information disclosure, to reduce the cost of capital of listed companies and improve the efficiency of financing the Chinese capital market. Companies need to work together to strengthen internal controls, create a good disclosure environment, and prevent the SPCR.

scholarly journals The Influence of Good Corporate Governance and Capital Structure on Firm Value: The Mediation Role of Financial Performance

2020 ◽  
Vol 35 (2) ◽  
pp. 230
Author(s):  
Ridwan Nurazi ◽  
Intan Zoraya ◽  
Akram Harmoni Wiardi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Value ◽  
Good Corporate Governance ◽  
The Impact

<pre>The objective of this study is empirically identify the impacts of Good Corporate Governance and capital structure on firm value with financial performance as intervening variable. We operate quantitative approach within the scope of manufacturing company of metal, chemical, and plastic packaging sector which listed in Indonesia Stock Exchange during the 2017-2018 periods as the population. Samples are chosen by purposive sampling method inwhich the company must report the financial statement in a row, obtained 79 observations. The data analysis technique used is financial ratio analysis to determine the condition of the business financial ratios of the variables studied. Data were analyzed using multiple linear regression analysis. The result shows that corporate governance and capital structure influence the firm value, moreover the use of institutional ownership ratio and capital structure will increase the value of the firm. The result also shows that the impact of Corporate governance and capital structure on the company value are mediated by financial performance. It means that the value of the firm can increase if the company able became an effective monitoring tool.</pre>

scholarly journals Analysis of the structure and cost of capital in mining enterprises

2017 ◽  
Vol 33 (1) ◽  
pp. 77-92 ◽  
Author(s):  
Robert Ranosz
Keyword(s):  
Capital Structure ◽  
Cost Of Capital ◽  
Cost Of Debt ◽  
Cost Of Equity ◽  
Mining Company ◽  
Optimal Capital Structure ◽  
Mining Companies ◽  
Debt Capital ◽  
Capital Funding ◽  
The Cost

AbstractThis article focuses on the analysis of the structure and cost of capital in mining companies. Proper selection of appropriate levels of equity and debt capital funding of investment has a significant impact on its value. Thus, to maximize the value of the company, the capital structure of the company should be composed to minimize the weighted average cost of capital. T he objective of the article is to present the capital structure of selected Polish and world’s mining companies and estimate their cost of equity and debt capital. In the paper the optimal capital structure for the Polish mining company (KGHM SA) was also estimated. It was assumed that both Polish and world’s mining companies, have no debt exceeding 45% in the financing structure. For the most of analyzed cases, the level of financing with debt capital is in the range between 10% and 35%. T he cost of equity exceeds the cost of debt capital and is in the range between 8% and 20%, while the cost of debt capital reaches the range between 1.9% and 12%. T he analysis of the optimal capital structure determining, performed for the selected mining company, showed that debt capital funding for the company should be in the range between 5.7% and 7.4%.

scholarly journals PENGARUH DETERMINAN STRUKTUR MODAL TERHADAP NILAI PERUSAHAAN (Studi Kasus Pada Perusahaan Properti Di Bursa Efek Indonesia)

2014 ◽  
Vol 2 (2) ◽  
Author(s):  
Murtianingsih .
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Cost Of Capital ◽  
Size Structure ◽  
Stock Exchange ◽  
Business Risk ◽  
Growth Opportunity ◽  
Property Companies ◽  
Equity Ratio ◽  
The Cost

MurtianingsihProgram Pascasarjana Magister Manajemen UMME-mail:[email protected] research was to know the effect of profitability, firm size, liquidity, structure asset, businessrisk, and cost of capital to capital structure at property simultaneously listed on IndonesiaStock Exchange and to know the variable which have partial effect to the capital structure.The research was taken place at Indonesia Stock Exchange Economics Faculty ofMuhammadiyah University Malang. Respondent are 21 property companies listed in IndonesiaStock Exchange. Purposive sampling was used to determine companies during five-years.Secondary data was taken between the year of 2006 up to 2010. Multiple regression analysisused to know the effect of profitability, firm size, liquidity, structure asset, business risk, andcost of capital to capital structure with 5 % of significance. The result of simultaneously regression(F test) exemplify that the variable profitability, firm size, structure asset, growthopportunity, liquidity, the cost of capital, business risk had significant effects to the capitalstructure of 21 property companies listed in Indonesia Stock Exchange. While the test of partialregression (t test), for the variable of profitability, growth opportunity, liquidity, cost ofcapital had effects to capital structure of property companies listed in Indonesia Stock Exchange,except the firm size, business risk, structure asset have no significant effects to thecapital structure of the property companies.Keyword: Debt to equity ratio, company size, profitability, growth, business risk and asset structure,cost of capital, liquidity

scholarly journals Biaya Modal Perusahaan di Indonesia: Tanggung Jawab Sosial dan Tata Kelola Perusahaan

2021 ◽  
Vol 26 (3) ◽  
pp. 361
Author(s):  
A. Firmansyah, A. F. Andriyani, M. L. Mahrus, W. Febrian, P. H. Jadi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Annual Reports ◽  
Corporate Social ◽  
The Cost

The high capital cost indicates the company's risk to obtain funding from debt and equity. The test in this study aims to prove the association between corporate social responsibility and corporate governance with the cost of capital. This study employs data sourced from financial reports and annual reports of the listed companies on the Indonesia Stock Exchange, downloaded from www.idx.co.id. In addition, this research data also employs stock price information sourced from finance.yahoo.com. The sample selection in this study used purposive sampling with a total sample of 260 observations from 65 companies from 2016 to 2019. The hypothesis test in this study used multiple linear regression analysis for panel data. This study concludes that corporate governance is positively associated with the cost of capital, while corporate social responsibility is negatively associated with the cost of capital. This study suggests that Indonesia's capital market supervisory authority needs to improve its governance policies and governance oversight mechanisms for companies listed on the Indonesia Stock Exchange.

scholarly journals PENGARUH PERTUMBUHAN PERUSAHAAN, STRUKTUR MODAL, DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN

2017 ◽  
Vol 2 (1) ◽  
Author(s):  
Isabella Permata Dhani ◽  
A.A Gde Satia Utama
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Annual Report ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Growth Effect ◽  
Analysis Method ◽  
The Impact ◽  
Sustainability Report

The purpose of the research is to obtain empirical evidence about the impact of growth, capital structure and profitability to firm value. The sample in this research is manufacturing company which listed in Indonesia Stock Exchange during the period of 2013 –2015. The source of the data of this research was conducted from annual report and sustainability report. This research is using quantitative approach with multiple linear regression analysis method. The result in this research found that growth effect positively to firm value, capital structure effect negatively to firm value  and profitability effect positively to firm value.Keyword : Growth, Capital Structur, Profitability, firm value

scholarly journals The impact of financing policy on the cost of debt

2021 ◽  
Vol 18 (4) ◽  
pp. 177-189
Author(s):  
Tetiana Konieva
Keyword(s):  
Capital Structure ◽  
Cost Of Debt ◽  
Financing Policy ◽  
Financing Policies ◽  
Conservative Policy ◽  
Industrial Level ◽  
The Cost ◽  
The Impact ◽  
A Company ◽  
Interest Payments

The cost of debt is a key element to define the amount of the regular interest payments of a company and its business value. It is used for indicators that warn of the economic crisis, which is relevant for the countries where most companies are financially dependent on liabilities. The formalized criteria for the types of financing policy, improved procedure for the cost of debt calculation make it possible to reveal policy with the capital structure that minimizes the cost of debt.The study is based on Ukrainian food processing companies for the period 2013–2020. The studied database was distributed by the types of financing policies: 22% of the cases have a conservative policy, 15% – moderate, 26% – aggressive, 37% – super-aggressive. The results show that the highest weighted cost of debt (24.1%) belongs to the conservative policy, which replaces negative equity by the expensive long-term debts, as well as super-aggressive policy (20.8%) with trade payable that is near half of the capital, and long days payable outstanding. A company can reduce the cost of debt relying on non-interest-bearing liabilities and trade payable if its days payable outstanding are kept at the industrial level or below. Moderate and conservative financing policies, which are based on equity and avoid debts, provide the lowest weighted cost of debt: 2.1% and 1.2%.Thus, choosing the desired type of financing policy for the company, it is possible to form a capital structure that will reduce the cost of debt.

scholarly journals Contingent Convertible Debt: The Impact on Equity Holders

Risks ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 47 ◽  
Author(s):  
Delphine Boursicot ◽  
Geneviève Gauthier ◽  
Farhad Pourkalbassi
Keyword(s):  
Capital Structure ◽  
Financial Distress ◽  
Cost Of Debt ◽  
Debt Ratio ◽  
Convertible Debt ◽  
Total Cost ◽  
Contingent Convertible Debt ◽  
The Cost ◽  
The Impact ◽  
The Capital Structure

Contingent Convertible (CoCo) is a hybrid debt issued by banks with a specific feature forcing its conversion to equity in the event of the bank’s financial distress. CoCo carries two major risks: the risk of default, which threatens any type of debt instrument, plus the exclusive risk of mandatory conversion. In this paper, we propose a model to value CoCo debt instruments as a function of the debt ratio. Although the CoCo is a more expensive instrument than traditional debt, its presence in the capital structure lowers the cost of ordinary debt and reduces the total cost of debt. For preliminary equity holders, the presence of CoCo in the bank’s capital structure increases the shareholder’s aggregate value.

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