scholarly journals PENGARUH STRUKTUR KEPEMILIKAN TERHADAP NILAI PERUSAHAAN DENGAN EFISIENSI STRUKTUR MODAL SEBAGAI VARIABEL MEDIASI

AJAR ◽  
2021 ◽  
Vol 4 (02) ◽  
pp. 87-109
Author(s):  
Felicia Wuisan ◽  
Excel Limbunan ◽  
Oktavianus Pasoloran ◽  
Cherly Thanamal
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Secondary Data ◽  
Order Theory ◽  
Annual Reports ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Research Period

This study aims to examine the influence of ownership structure on firm value mediated by efficiency capital structure. This research uses pecking order theory, agency theory, and stakeholder theory. The population used in this study are all companies listed on the Indonesia Stock Exchange (IDX) with the research period of 2016-2018. The method of determining the sample using non-random sampling i.e purposive sampling and uses secondary data in the form of annual reports and financial statements of the company. The analytical method used are path analysis and sobel test. The results showed that the efficiency of capital structure can fully mediate the effect of ownership structure on firm value.

scholarly journals KINERJA KEUANGAN, KINERJA SAHAM DAN STRUKTUR MODAL DI INDONESIA

2018 ◽  
Vol 18 (2) ◽  
pp. 135
Author(s):  
Nera Marinda Machdar
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Order Theory ◽  
Analysis Method ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Stock Performance ◽  
Observation Period

<p><em>This study addresses the role of the company's financial performance on the company's stock performance, and investigates the role of capital structure as a moderating variable to weaken the effect of the company's financial performance on the company's stock performance. This research uses agency theory and pecking order theory. Panel regression analysis method is used for the data analysis. The data used as the sample of the company is the properti and real estat firms listed in Indonesia Stock Exchange, and the observation period is the year 2011-2016. The number of samples by using purposive samping criteria is available 234 firms-year. The findings of this study is that the company's financial performance has no effect on the company's stock performance, and capital structure can not moderate the effect of the company's financial performance on the company's stock performance.</em></p>

scholarly journals DETERMINENTS OF CAPITAL STRUCTURE: EVIDENCE FROM PAKISTAN SUGAR INDUSTRY.

2016 ◽  
Vol 11 (2) ◽  
pp. 2694-2701
Author(s):  
Prof. Dr. Abdul Ghafoor Awan ◽  
Prof. Dr ZahirFaridi ◽  
Abdullahi ShahbazAnwer Ghaz
Keyword(s):  
Capital Structure ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Sugar Industry ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Trade Off ◽  
Factors Affecting ◽  
Financial Decision

Capital structure is one of the most complex areas of financial decision making because of its inter-relationship with other financial decision variables. Poor capital structure decisions can result in a high cost of capital which decreases the value of a firm. Effective capital structure decisions decrease the cost of capital and hence the value of a firm increases.  The objective of this empirical study is to analyze the factors affecting capital structure of sugar industry in Pakistan and to check whether the results confirm or not pecking order theory and trade-off theory. Different theories of capital structure have been reviewed like Modigliani and miller theory, trade-off theory, pecking order theory and market timing theory to make assumptions regarding capital structure of sugar firms. The findings are based on empirical results using panel data techniques for a sample of 30 firms listed on Karachi Stock Exchange from 2008-2011. The results show that tangibility is positively associated with leverage whereas size of the firm and liquidity are negatively associated with leverage. The results of profitability and growth opportunities are insignificant.

scholarly journals Pecking order, earnings management and capital structure

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1389-1394 ◽  
Author(s):  
Novi Swandari Budiarso ◽  
Winston Pontoh
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Stock Exchange ◽  
Agency Problem ◽  
Agency Problems ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Corporate Capital Structure ◽  
Debt Capacity

Most of studies imply that firms decrease or increase their debt capacity in context of pecking order theory or agency problems. On this point, the setting of this study is based on two main problems related to capital structure: the first is determining the source of funds for financing investments, and the second is solving the conflict between shareholders and managers, or the agency problem. The objective of this study is to provide evidence about how firms establish their capital structure in relation to pecking order theory and the agency problem by controlling earnings management in the context of Indonesian firms. This study conducts logistic regression on 28 firms in the consumer goods industry listed on the Indonesia Stock Exchange from 2010 to 2017.This study finds that pecking order theory determines the capital structure of most Indonesian firms with high debt. The results imply that agency problems are unable to explain corporate capital structure and earnings management is not effective for motivating Indonesian firms to establish corporate governance.

scholarly journals PENGARUH PROFITABILITAS, SIZE DAN GROWTH TERHADAP STRUKTUR MODAL PADA INDUSTRI BARANG KONSUMSI YANG DIDASARI OLEH PECKING ORDER THEORY DAN TRADE-OFF THEORY

Media Ekonomi ◽  
2016 ◽  
Vol 16 (2) ◽  
pp. 229
Author(s):  
Ika Yustina Rahmawati
Keyword(s):  
Capital Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Trade Off ◽  
Industry Sector ◽  
Size Growth ◽  
Consumer Goods Industry

This study aims to determine the effect of profitability, size and growth of the company's capital structure in the consumer goods industry sector based on the pecking order theory and trade-off theory. This research was conducted using the procedure panel data for a sample of 26 consumer goods industry sector companies listed on the Indonesia Stock Exchange during 2009- 2013. The findings of this study is to support H1a, H2b and H3b. based on the results of the analysis of the profitability variable (measured ROE) there is a negative correlation significant at α = 5%, which means supporting the pecking order theory. The size variable (as measured by total assets) and growth (which was measured by the Market to Book Value) positively associated significant at α = 5% and 10%, which means supporting the trade-off theory. For the selection method of FEM and REM, researchers used a test in which the capital REM Test Hausmant be an option for the measurement of capital structure (DER, DAR and Working capital) while FEM selected for the measurement of capital structure (Leverage). Keyword: profitability, size, growth, capital struktur, pecking order theory and trade-off theory

scholarly journals The pecking order theory testing on company life cycle

2019 ◽  
Vol 6 (5) ◽  
pp. 101-107
Author(s):  
Ida Ayu Kayika Apsari ◽  
Ni Ketut Rasmini
Keyword(s):  
Life Cycle ◽  
Linear Regression ◽  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Order Theory ◽  
Funding Decision ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Regression Tests

This study was conducted on 49 property and real estate companies listed on the Indonesia Stock Exchange. Year of observation in this research is the year 2013-2017. Research samples of 49 property and real estate companies are grouped based on their life cycle criteria based on the company's net sales for 5 years. After the company is grouped based on its life cycle, multiple linear regression tests are used to test whether the company's Life Cycle affects the company in applying Pecking Order Theory in its funding decision. After multiple linear regression tests, the company in the Growth and Mature cycle stages is compared to whether firm growth is stronger than mature in applying Pecking Order Theory. The results of this study obtained Life Cycle property and real estate companies listed on the Stock Exchange did not significantly affect the Pecking Order Theory. The life cycle of the company does not affect the company in determining its funding decision. The life cycle of the company does not affect the company to apply the Pecking Order Theory in determining its capital structure. Companies that have been grouped according to their life cycle, in determining their capital structure, whether the company will fund with internal funds or external funds company, not based on the life cycle of the company.

scholarly journals Determinants of Debt-Equity Choice – Evidence from Poland

2015 ◽  
Vol 5 (2) ◽  
pp. 1-8 ◽  
Author(s):  
Bogna Kazmierska-Jozwiak ◽  
Jakub Marszałek ◽  
Paweł Sekuła
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Significant Negative Relationship ◽  
Warsaw Stock Exchange ◽  
Growth Prospects ◽  
A Company

The question of debt-equity choice has so far been widely discussed in literature. The aim of the paper is to analyse the determinants of capital structure of Polish enterprises. We analysed factors that may impact the indebtedness. This analysis fills in the gap in worldwide studies with the case of a country representing the group of „emerging markets”. The paper examines capital structure determinants of non-financial companies listed on the Warsaw Stock Exchange. We used five independent variables compatible with the up-to-date achievements in the field. The results indicate that there is an evidence of a significant negative relationship between the size of a company, its growth rate, profitability, tangibility and the level of total debt. The study shows positive relationship between growth prospects of the company and the debt level. The results of the study indicate that the pecking order theory better explains the changes in indebtedness of analysed companies than other capital structure theories. Obtained results are mostly consistent with earlier studies conducted in the Poland and with studies in Western economies.

scholarly journals Impact of excess cash on earnings management and firm value: Evidence from China

2019 ◽  
Vol 17 (1) ◽  
pp. 245-254 ◽  
Author(s):  
Muthuveerappan Thenmozhi ◽  
Palanisamy Saravanan ◽  
Aghila Sasidharan
Keyword(s):  
Earnings Management ◽  
Firm Value ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Order Theory ◽  
Pecking Order ◽  
Chinese Firms ◽  
Pecking Order Theory ◽  
Excess Cash

This study examines how excess cash drives earnings management and firm value in China. Using a fixed effect panel regression on a sample of 12,629 observations covering 300 firms listed in the Shanghai Stock Exchange, we find that excess cash has a positive impact on firm value confirming pecking order theory. Our results show that earnings management has a negative impact on firm value in China, which supports the efficient earnings management view. We find that managers in Chinese firms are less likely to use excess cash for manipulating earnings. We provide empirical evidence that firms with excess cash seem to use it more for precautionary purpose than earnings management and the excess corporate liquidity of Chinese firms is used for value-enhancing activities. The test of robustness using the Instrumental Variable (IV) model confirms the results of the study. Our study merges two areas of corporate finance by incorporating agency problems concerning earnings management and cash holdings

scholarly journals Factors determining capital structure: Evidence from Companies listed on the Hanoi Stock Exchange

2021 ◽  
Vol 5 (2) ◽  
pp. first
Author(s):  
Hồ Xuân Thủy ◽  
Nguyễn Thị Huyền Trang
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Order Theory ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Trade Off ◽  
Tax Shield ◽  
Factors Influencing ◽  
Fixed Assets ◽  
Debt Tax Shield

This paper investigates the factors influencing capital structure of the companies listed on the Hanoi Stock Exchange (HNX) during 2011-2018. Factors tested included non-debt tax shield, firm size, tangible fixed assets structure, and profitability based on previous studies and the two prominent capital structure theories namely the trade-off theory and the pecking-order theory. We used the variable financial leverage (LEV) to measure capital structure. The analysis employs multiple linear panel regression models in examining factors influencing capital structure, the random effect model (REM) obtained by table data processing was found to be consistent with the study data. Our results revealed that profitability and non-debt tax shield had a negative impact on capital structure. On the other hand, firm size exhibited a positive impact whilst the effect of tangible fixed assets was statistically insignificant. Amongst all tested factors, non-debt tax shield was shown to exert the greatest influence on capital structure of companies. We conclude that the factors influencing capital structure of the companies listed on the Hanoi Stock Exchange are mostly consistent with the hypothesis of trade-off theory rather than pecking-order theory. Our results support the trade-off theory because large firms are more likely to borrow to greater benefits from the tax shield. The study greatly contributes towards the enrichment of empirical evidence on the factors influencing capital structure and helps the management with planning, making properly informed decisions to improve the firm performance.

scholarly journals PENGARUH STRUKTUR KEPEMILIKAN, STRATEGI DIVERSIFIKASI, LEVERAGE, FAKTOR INTERN DAN FAKTOR EKSTERN TERHADAP NILAI PERUSAHAAN (STUDI EMPIRIK PADA PERUSAHAAN MANUFAKTUR DAN NON MANUFAKTUR DI BURSA EFEK JAKARTA)

2018 ◽  
Vol 11 (2) ◽  
pp. 236-254
Author(s):  
Sujoko Sujoko
Keyword(s):  
Ownership Structure ◽  
External Factor ◽  
Stock Exchange ◽  
Order Theory ◽  
Internal Factor ◽  
Pecking Order ◽  
Diversification Strategy ◽  
Pecking Order Theory ◽  
Trade Off ◽  
The Impact

The main objective of the study is to examine the impact of ownership structure, diversification strategy, leverage, external factor, internal factor on the value of the firms in Jakarta Stock Exchange. It is argued that unlike the agency problem of advanced stock market, the agency problem in the Jakarta Stock Exchange is the divergence of interest between the minority holders and majority holders. This is because the Jakarta Stock Exchange is characterized, among other things, by the domination of large shareholders. The hypotheses are: (1) there are the impact of ownership structure, external factor, and internal factor on diversification strategy, (2) there are the impact of ownership structure, external factor, internal factor, and diversification strategy on leverage, (3) there are the impact of ownership structur, external factor, internal factor, leverage ,diversification strategy on value of the firm. This study is to examine Agency Theory, Jensen and Meckling (1976), Pecking Order Theory, Myers (1984), Trade Off Model and Signaling Theory (1979). Population in this study are public company listed in Jakarta Stock Exchange  during 2000 – 2004. As many as 134  firms listed in Jakarta Stock Exchange were taken as a sample using a purposive sampling method.The data were then analyzed by the structural equation modeling ( SEM) analysis, using the AMOS Program version 4.01.The results of this study show that (1) there are the impact of ownership structure, external factor, internal factor on diversification strategy, (2) there are the impact of ownership structure, diversification, external factor, internal factor on leverage,(3)there are the impact of ownership structure, external factor, internal factor, leverage, diversification on value  of the  firm. The result of the study does not support the Agency Theory, from Jensen and Meckling (1976), but the result of the study  supports  Pecking Order Theory from  Myers (1984),  Trade off model and Signaling Theory from Battacharya (1979). The result of the study is hoped to contribute theoretically and practically.Theoritical contribution is bounded to examine the Agency Theory from Jensen and Meckling (1976), Pecking Order Theory from Myers (1984), Trade off model and Signaling Theory from Battacharya (1979). The result of the study to indicate that  practice public company in Indonesia is not concern with Agency Theory from Jensen and Meckling (1976). The result of the study indicates that Pecking Order Theory from Myers (1984). Trade Off Model and Signaling Theory from Battacharya,(1979) are concerned with the practice public company in Indonesia.

scholarly journals CAPITAL STRUCTURE AND CULTURE IN MALAYSIA: A STUDY FROM ETHNICITY AND RELIGION PERSPECTIVES

2020 ◽  
Vol 8 ◽  
pp. 52-61
Author(s):  
Shu Geok Ooi ◽  
Ei Yet Chu
Keyword(s):  
Capital Structure ◽  
Institutional Economics ◽  
Secondary Data ◽  
Order Theory ◽  
New Institutional Economics ◽  
Minority Shareholders ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Financial Decision ◽  
Data Collection Approach

Conceptualization from New Institutional Economics of Williamson (2000), the study looked at the issue of formal and informal institutional factors on financial decision making. This study first investigated the informal embedded culture such as “ethnicity and religion” that could influence the decision in a firm's capital structure. Secondly, the influence of culture informal institutions such as “Shariah and Non-Shariah compliant firms on capital structure decisions was investigated. Previous observations showed Chinese have high individualism and low uncertainty avoidance. Whereas, the Malay has low individualism and high uncertainty. These dimensions affect firm’s decision behaviour towards capital structure decision. This study aimed to confirm whether culture could explain trade-off and pecking order theory of capital structure decision. The study adopted a New Institutional Economics framework to understand how cultural divergence rationality interferes on caporal structure decision, where traditional finance only emphasises on economic responsibility that strives resources maximization. The study applied a longitudinal approach, where 187 sample firms of data covering a sample period from 2015 to 2019. The firms consisted of Bursa 90 best corporate governance firms awarded by Minority Shareholders Watch Group (MSWG) in 2017 and 2018; also randomly selected 97 PLCs of non-winner firms where both panels data balance in term of Board independence and Number of Shariah Compliance PLCs. A secondary data collection approach was adopted to obtain the CEO’s ethnicity and religion. Data from the extract of an annual report and Shariah-compliant list were adopted. This study made significant contributions to explain the relationships of informal (culture as ethnicity and religion) on capital structure; formal institution (policies as firm’s shariah compliance) on capital structure decision.

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