ANTECEDENT INFLUENCE OF COMPANY ADVANTAGESAND DISADVANTAGES ON INVESTMENT OPPORTUNITY SET AND FINANCING POLICY FORM THE PERSPECTIVE OF AGENCY THEORY

Hikmah, Khoirul and Haryono, Tulus (2015) ANTECEDENT INFLUENCE OF COMPANY ADVANTAGESAND DISADVANTAGES ON INVESTMENT OPPORTUNITY SET AND FINANCING POLICY FORM THE PERSPECTIVE OF AGENCY THEORY. In: Prosiding International Seminar 2015: Integrated View To International Development Society Empowerment Through Economics, Agriculture, and Engineering Approach, 2015, Yogyakarta.

Text CamScanner 04-26-2023 17.03.pdf Download (25MB)

Abstract

Global financial crisis of 2007-2008 began with the U.S. financial crisis that resulted in global crisis. Under a proposed free trade system for 2015, companies around the world must take extra care when implementing their policies. Company policies are grearhy inffuenced by the objectives of a company in improving its Investment Opportunity Set (1OS). The study attempis to elaborate and analyze the influence of multinationality, size, and profitability (AlNajjar K. Fouad and Ahmed, 2001) as company advantages, and leverage and systematic risk (AlNajjar K.Fouad and Ahmed, 2001) as company disadvantages on the change in investment opportunity set with its appropriate Proxy and influence on company funding arrangements. The present study employed a survey method. Population of this study consists of 152 companies. The sampling was conducted based on purposive sampling technigue, and the sample that meet the criteria amounted to 87 companies. Data analysis was conducted in two ways: a) Confirmatory Factor Anahsis (CFA) to find appropriate proxies: and b) SEM and Partially Least Sguare (PLS). Results: company advantages were proven to have a positive effect on Investment Opportunity Set (10S). Company disadvantages were not proven to have a negative effect on Investment Opportunity Set (IOS). Investment Opportunity Set was proven to have a positive effect on corporate financing policies at 1096 significance level. Company advantages were proven to have a negative effect on corporate financing policies. Company disadvantages were proven to have a negative effect on corporate financing policies. IOS was Proven to mediate the influence of company advantages on corporate financing policies at 1096 significance level. IOS.was proven to mediate the influence of company disadvantages on corporate financing policies. Company disadvantages have no significant influence on investment opportunity set. This is because companies in Indonesia have yet considered the leverage and systematic risk in determining the directions of corporate investment policies to grow and develop as well as in determining their financing policies.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	multinationality, profitability, leverage, sytematic risk, Investment Opportunity Set, financing policies
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Dr. SE MSi KHOIRUL HIKMAH
Date Deposited:	28 Apr 2023 01:58
Last Modified:	28 Apr 2023 02:00
URI:	http://eprints.upnyk.ac.id/id/eprint/34675

Actions (login required)

View Item