CASH FLOW, DEBT ISSUANCE, EQUITY ISSUANCE, AND FIXED ASSET INVESTMENT ON MANUFACTURE COMPANY 2010-2014CASH FLOW, DEBT ISSUANCE, EQUITY ISSUANCE, AND FIXED ASSET INVESTMENT ON MANUFACTURE COMPANY 2010-2014

Matters about financing decision based on pecking order theory’s hierarchy are currently appealing. This research strives to discover how corporate’s fixed asset investment reacts to cash flow, debt issuance, and equity issuance. Researcher uses 75 samples of manufacturing company in Indonesia during 2010-2014 period with 199 firm-year observation. Multiple linear regression’s result indicates that cash flow and debt issuance have influence towards corporate’s fixed asset investment, but the equity issuance have no influence towards corporate’s fixed asset investment. Also regression coefficient exhibits that manufacturing company in Indonesia follows pecking order theory’s hierarchy. Cash flow’s influence towards fixed asset investment is more significant than debt issuance’s, and debt issuance’s influence is stronger than equity issuance. This points out that corporate’s fixed asset investment is more sensitive towards cash flow (internal fund) compared to debt issuance (external fund), and so is debt issuance is more sensitive compared to equity issuance. With all that in mind, it is concluded that manufacturing company in Indonesia follows pecking order theory in terms of financing decision, which uses internal fund at first then started to use external fund if deemed necessary.

PENGARUH PENDANAAN INTERNAL DAN KEMAMPULABAAN TERHADAP PERTUMBUHAN PERUSAHAAN (Studi Kasus pada PT. Timah Tbk. dan PT. Aneka Tambang Tbk.)

The objective of this research is to understand the influence of retained earning and profitability to the growth of the company, to know the significance internal fund and profitability to the growth of the company with partial and to know the significance internal fund and profitability to the growth of the company with simultant. Projection that is used for internal fund is retained earning, profitability is return on equity (ROE), and the growth of the company is growth (g). Data used are the two mining companies for 5 years starting from 2004 until 2008Analysis methods used are coefficients correlation for the relationships between the variables, coefficients determination to measure the closeness relationship among the variables, regression coefficients to measure the influence of the free variables are bound variables, and ratio analysis to determine the size of the portion of each variable. Results of research on PT Timah Tbk and PT Aneka Tambang Tbk is (a) for t test internal fund with proxy retained earnings has a significant influance to the growth of the company with proxy growth, (b) for t test profitability with proxy return on equity doesn’t has a significant influance to the growth of the company with proxy growth, and (c) for f test internal fund with proxy retained earnings and profitability with proxy return on equityhas a significant influence to the growth of the company with proxy growth. Keywords : internal fund, profitability, growth of the company

PENYULUHAN AGAMA HINDU BAGI NARAPIDANA DI RUMAH TAHANAN KLAS II B NEGARA, KABUPATEN JEMBRANA

<p class="Default"><em>The State Detention Unit (Rutan) is the place where the suspect or defendant is detained during the process of investigation, prosecution and examination in court and place for inmate who are undergoing criminal verdict. Inmates obtain various forms of coaching that have been programmed by Rutan. Although it has gained various forms of counseling but not infrequently there are inmates who after freedom and return to community again commits a crime and resulted in the prisoner back into Rutan. So based on the phenomenon that happened, researcher interested to do research about counseling of Hinduism for prisoners in State Class II State B prison, Jembrana Regency, in order to prevent the return of prisoners to do criminal act and so that prisoners no longer re-enter into Rutan.</em></p><p class="Default"><em>The problems in this research are: (1) Form of execution of Hindu counseling for prisoners in Class II State Household Detention.B State, Jembrana District, (2) Factors that hamper the implementation of Hindu counseling for inmates in Prisons Class II. B State, Jembrana District, (3) How to overcome obstacles in the implementation of Hindu counseling for prisoners in the State Detention Class II.B State, Jembrana District. Theories used to analyze the problem are Structural Functional theory and the theory of Rangsang Balas. The subject of this study is the Prisoners in Rutan. Data collection methods used by the authors ie observation, interviews, literature, documentation, and data analysis techniques.</em></p><p class="Default"><em>The results showed that the forms of extension of Hinduism held in State Household of Class II B State were delivered in the form of Dharma Wacana, Dharma Sadhana and Dharma Yatra. Factors inhibiting the implementation of Hindu counseling for prisoners in State Detainee Class II B State that is the factor of lack of extension workers, funding factors, factors of inmates. Efforts to overcome obstacles in the implementation of Hindu counseling in the State Detainee Class II B State namely by empowering functionaries in the State custody and establish cooperation with related parties, carry out internal fund digging and attendance.</em></p>

Pengaruh Financial Leverage terhadap Financial Performance pada Sektor Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2015

The manufacturing sector is one of the most dominant economic sectors in in achieving growth and development in Indonesia. It needs adequate fund to develop its business. The sources of fund are from internal and external. The firm usually optimized the usage of internal fund prior to external fund. The internal fund comes from equity while the external funds are from debt and stock. Debt is also known as financial leverage. There is a phenomenon that the usage of debt increased the firm’s financial performance, since interest on debt could lower the payment of tax (tax shield). On the other side, the higher the financial leverage the higher the risk of bankruptcy. This research aims to analyze whether financial leverage has an influence on financial performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) period 2015. The method of analysis used in this research is multiple linear regression analysis. This research uses quantitative approach with a sample of 140 listed companies in the manufacturing industry. The firm’s financial performance could be measured by the financial ratios. Financial Leverage ratios are ratios that measure the ability of firm’s to meet its financial obligation and the level of usage debt as compared to equity. There are several financial leverage ratios that used in this research, such as Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR). Financial performance indicates the ability of firm to generate profit and measured by Profitability Ratio. Return on Asset (ROA) is one of the Profitability Ratio. The statistical result shows that Debt Ratio (DR) negatively affect Return on Asset (ROA) and Interest Coverage Ratio (ICR) positively affect Return on Asset (ROA). Meanwhile, Debt to Equity Ratio (DER) and Long Term Debt Ratio (LTDR) did not affect Return on Asset (ROA). On the other hand, result shows that Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR) affect Return on Asset (ROA) simultaneously. Keywords: Financial Leverage, Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), Long Term Debt Ratio (LTDR), Financial Performance, Return on Assets (ROA)

FINANCING FOR INNOVATION OF CHINESE LISTED FIRMS

Using a panel data of listed companies, this paper studies how internal financing and external financing affect the innovative investment of Chinese industrial enterprises. It finds that internal fund is the primary source of financing for the innovative investment undertaken by Chinese nonfinancial firms and the role of external financing varies in the ownership structure of the firm. We find that for the centrally controlled State-Owned Enterprises (SOEs), bank loans is an important secondary source of financing for innovation, while for both local SOEs and listed non-SOEs bank loans are not important. External smoothing mechanisms also vary across types of ownership structure. We find that central SOEs mainly use bank loans to buffer against negative shocks to internal funds, while both local SOEs and listed non-SOEs use equity financing from the stock market for the same purpose. Our study shows that it is the accumulation of internal fund, rather than the development of formal financial sector, that contributes to the rapid growth of total innovative investment of Chinese firms.

10 years review of endowment fund for research in IIUM Kuantan

Introduction: IIUM Research Endowment Fund was initiated to encourage research activities, but was withdrawn in 2015 due to financial constraint. The discontinuity was additionally justified as Endowment Funds being an internal fund, does not contribute to MyRA, an instrument used to gauge research activities in Malaysian Universities. It is divided into Endowment A (Non-S&T) and B (S&T) which funds RM5,000.00 and RM20,000.00 accordingly. This study aims to analyze the output of IIUM Kuantan lecturers from the fund from 2005- 2015. Methods: Data were obtained from IIUM Kuantan Research Management Center filing system, which include End of Project Forms and Research Reports among others. The outcome measured includes publication, human capital and seminar presentation. Each outcome was given scores to indicate its importance. Results: A total number of 349 grants, which consisted of 117 grants for Endowment A (RM585,000) and 232 grants for Endowment B (RM4,640,000) were approved since 2006 until 2015. The total amount of grant given was RM5,225,000. Endowment A and B produced 76 and 242 publications, 34 and 121 students’ project and 74 and 299 conference presentations accordingly. Endowment A and B utilized RM2839.81 and RM10,108.93 for 1 score accordingly. Conclusions: Although Endowment Grants were not considered in MyRA markings for research grants received, it has contributed significantly to other MyRA scores such as publication, presentation and students’ development with a relatively small amount of money.

LONG-TERM ADJUSTMENT OF CAPITAL STRUCTURE: EVIDENCE FROM SINGAPORE, HONG KONG AND TAIWAN

This paper examines the impact of profitability, stock price performance and growth opportunity on the capital structure of firms in Singapore, Taiwan and Hong Kong. In contrast to Kayhan and Titman (2007), it is found that firms in these three Chinese-dominated economies strongly prefer debt to equity or internal fund financing. They also take advantage of stock price appreciation by issuing more shares. An adjustment model for debt ratios is estimated. The results suggest that the leverage ratios of these firms slowly adjust toward their target levels. Deviations from the target due to the pecking order and market timing effects are found to be significant.

Follow the Money: Quantifying Domestic Effects of Foreign Bank Shocks in the Great Recession

Foreign banks pulled significant funding from their US branches during the Great Recession. We estimate that the average-sized branch experienced a twelve percent net internal fund “withdrawal,” with the fund transfer disproportionately bigger for larger branches. This internal shock to the balance sheet of US branches of foreign banks had sizable effects on their lending. On average, for each dollar of funds transferred internally to the parent, branches decreased lending supply by about forty to fifty cents. However, the extent of the lending effects was very different across branches depending on their pre-crisis modes of operation in the United States.

Unit Pricing.

Unit-linked business has been with us for about 20 years. The original concept consisted of a life assurance policy under which the benefits were linked to the performance of a Unit Trust and the definition of unit pricing was therefore of no direct concern to the Insurance Company. Subsequently, contracts were issued where the benefits were linked to the performance of an internal Unit Fund and the definition of unit pricing then became the direct concern of the Actuary. This paper adopts a simplified approach to unit pricing and reviews some of the issues to be considered when calculating unit prices for an internal fund. The paper does not consider the question of Unit Trust pricing nor have I attempted to provide a summary of historic and current practices or to provide any hard and fast rules, the aim being to concentrate on the principles involved.