scholarly journals Comparison of Determinants of Capital Structure in Lippo Group and Bakrie Group Companies Listed on the Indonesia Stock Exchange (Partial Adjustment Model Approach)

2021 ◽  
Vol 8 (2) ◽  
pp. 83-88
Author(s):  
Fildzah Fitria ◽  
Khaira Amalia Fachrudin ◽  
Amlys Syahputra Silalahi
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Company Size ◽  
Group Company ◽  
Partial Adjustment ◽  
Insignificant Effect ◽  
Adjustment Model ◽  
Growth Opportunity ◽  
Partial Adjustment Model ◽  
Model Approach

This study aims to determine the determinants of the capital structure of the Lippo Group and the Bakrie Group listed on the Indonesia Stock Exchange using the partial adjustment model approach. The population in the Lippo Group company is 12 and the population at the Bakrie Group company is 9. The sample of this study is that all companies listed on the Indonesia Stock Exchange are 21 companies. Data analysis used panel data regression method with partial adjustment model approach. The results of the research in the t test at the Lippo Group company show that the lag leverage has a positive and insignificant effect on leverage, profitability has a positive and significant effect on leverage, company size has a positive and insignificant effect on leverage, earning volatility has a positive and significant effect on leverage, assets tangibility has a positive and significant effect on leverage and growth opportunity has a positive and insignificant effect on leverage. The results of the research in the t test at the Bakrie Group company show that the lag leverage has a positive and insignificant effect on leverage, profitability has a positive and insignificant effect on leverage, company size has a positive and insignificant effect on leverage, earning volatility has a positive and insignificant effect on leverage, assets tangibility has a negative and insignificant effect on leverage, growth opportunity has a negative and insignificant effect on leverage. The partial adjustment model test results show that only Lippo Group company on the variables of profitability, earning volatility and assets tangibility have a significant positive effect on leverage. The results of the comparison of the optimal capital structure show that the Bakrie Group has a higher level of optimal capital structure by 83% than the Lippo Group at 55%. Keywords: Lag Leverage, Profitability, Company Size, Earning Volatility, Assets Tangibility, Growth Opportunity, Leverage.

scholarly journals The Heterogeneity of Speed of Adjustment Capital Structure Across Industrial Sectors

2021 ◽  
Vol 10 (1) ◽  
pp. 103-114
Author(s):  
Bibit Robiatun ◽  
Rini Setyo Witiastuti
Keyword(s):  
Capital Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Partial Adjustment ◽  
Speed Of Adjustment ◽  
Basic Industry ◽  
Industrial Sectors ◽  
Partial Adjustment Model ◽  
Firm Characteristic

This study aims to analyze heterogeneity of speed of adjustment on basic industry, consumer goods, and misceleeneous companies. The population in this study uses basic industry, consumer goods, and miscellenoeus companies listed on the Indonesia Stock Exchange in 2009-2018 period. The method of determining the sample using a pusposive sampling technique based on criteries determined by researchers. We employ two-step partial adjustment model and use measure of book leverage and firm characteristic; profitability, size, tangibility, and growth which has an influence leverage target to estimate speed of adjustment. For three industries, there is evidence of heterogeneity of speef adjustment. The result showed that speed of adjustment 24% of basic industry, 37.1% of consumer goods, and 27.3% of miscellaneous industry.

scholarly journals DETERMINANTS OF MUDHARABAH FINANCING IN INDONESIA (PARTIAL ADJUSMENT MODEL APPROACH)

2021 ◽  
Vol 4 (2) ◽  
pp. 445-458
Author(s):  
Ayif Fathurrahman ◽  
Anggun Dwi Cahyani ◽  
Edi Supiyono
Keyword(s):  
Time Series ◽  
Capital Adequacy ◽  
Partial Adjustment ◽  
Adjustment Model ◽  
Partial Adjustment Model ◽  
Capital Adequacy Ratio ◽  
Model Approach

Penelitian ini dilakukan untuk mengetahui pengaruh Capital Adequacy Ratio (CAR), Return On Asset (ROA), tingkat bagi hasil, tingkat inflasi, dan nilai tukar terhadap pembiayaan mudharabah pada Bank Umum Syariah di Indonesia baik secara parsial ataupun simultan. Jenis data yang digunakan adalah data time series dimana periode waktunya dari tahun Januari 2017 sampai Oktober 2019. Metode analisis data yang digunakan untuk melihat pengaruh variabel independen terhadap variabel dependen yaitu metode Partial Adjustment Model (PAM) dengan menggunakan Eviews 7 serta melakukan uji asumsi klasik. Secara simultan hasil penelitian ini menunjukkan bahwa variabel Capital Adequacy Ratio (CAR), Return On Asset (ROA), tingkat bagi hasil, tingkat inflasi, dan nilai tukar berpengaruh terhadap pembiayaan mudharabah Bank Umum Syariah di Indonesia. Selanjutnya secara parsial dalam jangka panjang dan jangka pendek didapatkan hasil bahwa variabel Capital Adequacy Ratio (CAR) berpengaruh negatif signifikan terhadap pembiayaan mudharabah Bank Umum Syariah di Indonesia, variabel Return On Asset (ROA), tingkat bagi hasil, dan nilai tukar berpengaruh positif dan signifikan terhadap pembiayaan mudharabah Bank Umum Syariah di Indonesia, sedangkan variabel tingkat inflasi berpengaruh tidak signifikan terhadap pembiayaan mudharabah Bank Umum Syariah di Indonesia.

scholarly journals Microeconomics and raw material price on capital structure adjustment through dynamic target in Indonesian textile industries

Accounting ◽  
2021 ◽  
pp. 231-238
Author(s):  
Sunita Dasman ◽  
Erie Febrian ◽  
Sulaeman Nidar ◽  
Aldrin Herwany
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Raw Material ◽  
Company Size ◽  
Speed Of Adjustment ◽  
Growth Opportunity ◽  
Structure Adjustment ◽  
Dynamic Target ◽  
Textile Industries ◽  
Retained Earnings

This study aims to examine the effects of company-specific macroeconomic fluctuation in raw materials prices on the speed of adjustment through dynamic targeting capital structure on textile companies listed on the Indonesia Stock Exchange during 2012 and the second quarter of 2020. Using panel data regression of the fixed-effect method, we discovered that the speed of adjustment varies in each industry and period. Textile companies listed on the Indonesia Stock Exchange adjust their capital structure through a dynamic target of 53.3% per year. It takes 1 year and 10 months to close the target capital structure. The factors that determine the target capital structure include company size, tangibility, liquidity and growth opportunity, asset utilization, as well as retained earnings. On the other side, factors that contribute to the speed of adjustment include company size, growth opportunity, earnings volatility, asset utilization, retained earnings, distance to the target, and economic growth. Other factors that also affect the speed of adjustment include fluctuations in the prices of cotton and crude oil. The result of this study is expected to provide an optimal capital structure formulation to the textile industries in Indonesia to finance companies’ operational activities and growth opportunities effectively. This study also provides an overview of how textile companies make capital structure adjustment, as there are changes in company-specific factors, macroeconomic conditions, and fluctuation in raw material prices.

scholarly journals The Influence Of Company Size, Profitability And Growth Opportunities On Capital Structure

2020 ◽  
Vol 7 (2) ◽  
pp. 162-172
Author(s):  
Yesi Fitri Yuwanita ◽  
Desi Ilona ◽  
Selvi Yona Sari
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Listed Company ◽  
Control Variable ◽  
Secondary Data ◽  
Sampling Technique ◽  
Company Size ◽  
Panel Data Regression ◽  
Growth Opportunity ◽  
The Capital Structure

The purpose of this study is to determine the effect of company size, profitability and growth opportunity on capital structure. The research object used was a publicly listed company listed on the Indonesia Stock Exchange in 2016-2018. This study uses a random sampling technique in determining research samples. The number of companies selected as samples in this study were 363 companies from 656 publicly listed companies listed on the Indonesia Stock Exchange. The data source used in this study is secondary data. The data analysis method used in this study is panel data regression analysis. The results of this study indicate that simultaneously the size of the company (Size), profitability (ROA) and growth opportunity (GO) with liquidity (CR) as a control variable has a significant effect on capital structure. The size of the company (Size) and growth opportunity (GO) does not significantly influence the capital structure (DER), and profitability (ROA) has a negative and significant effect on the Capital Structure (DER). While liquidity (CR) has a negative and significant effect.

scholarly journals Targeting Behavior among Indonesian Firms: Two-Step Partial Adjustment Model Analysis

2019 ◽  
Vol 10 (1) ◽  
pp. 92-101
Author(s):  
Dwi Cahyaningdyah
Keyword(s):  
Stock Exchange ◽  
Financial Industry ◽  
Partial Adjustment ◽  
Financial Decisions ◽  
Speed Of Adjustment ◽  
Current Period ◽  
Adjustment Model ◽  
Partial Adjustment Model ◽  
Target Firms ◽  
Target Leverage

In this research, we tested the heterogeneity of speed of adjustment toward target leverage among industries on the Indonesian stock exchange by using two-step partial adjustment model. The sample collected from 2007-2016 and consisted of firms in eight sectors, i.e. agriculture, mining, basic industries, miscellaneous, consumer goods, property and real estate, infrastructure, utilities and transportation as well as trade, services and investment sectors. Firms in the financial industry are excluded because the capital structure of firms in the financial industry reflects specific regulations and are not independent firms’ policies. The results showed that speed of adjustment ranged from 61% - 45% for book leverage and 67% - 43% for market leverage. This significant speed of adjustment is consistent with trade-off theory, which states that firms have target leverage and when firms are deviated from the target, firms will make financial decisions that will close the gap between previous year’s leverage and the target leverage of current period.

scholarly journals Dividend policies of travel and leisure firms in the UK

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erhan Kilincarslan ◽  
Sercan Demiralay
Keyword(s):  
Stock Exchange ◽  
Data Set ◽  
Partial Adjustment ◽  
Content Type ◽  
Dividend Policies ◽  
Adjustment Model ◽  
Partial Adjustment Model ◽  
Dividend Smoothing ◽  
Financial Characteristics ◽  
The Uk

Purpose This study aims to examine cash dividend practices of travel and leisure (T&L) companies listed on the London Stock Exchange (LSE). Design/methodology/approach The study uses a panel data set of 524 firm-year observations of 55 unique publicly listed UK T&L companies between 2007 and 2019. First, it uses a modified version of Lintner’s (1956) partial adjustment model for analysis regarding the target payout ratio and dividend smoothing. Second, it performs logit and Tobit models in ascertaining the association between financial characteristics and divided decisions of T&L firms. Finally, it applies the modified specification of the partial adjustment model on different sub-samples that are partitioned based on various financial factors to determine how the financial characteristics of T&L companies affect their dividend behavior. Findings The results show that UK T&L companies have long-term payout ratios and adjust their cash dividends by moving gradually to their target at a serious degree of smoothing. The findings also detect that financial characteristics of T&L firms (i.e. profitability, debt and size) have significant effects on their dividend payments decisions. In particular, more profitable and larger T&L corporations are more likely to pay cash dividends, whereas T&L companies with more debt are less likely to pay cash dividends in the UK. The results further reveal that although such financial characteristics also have important impacts on the target payout ratios and dividend smoothing levels, UK T&L companies generally adopt stable dividend policies over the period 2007-2019. Originality/value This is thought to be the first study to provide insights on dividend policy practices of UK travel and leisure corporation listed on the LSE.

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