Growth Opportunities Utilization: Debt Overhang or Asymmetric Information?
Inter-industry has various capital structures to take advantage of growth opportunities due to agency differences and information asymmetric problems. This research aims to analyze: (1) the differences in leverage between industries and (2) the impact of shareholders–debtholders conflict and informa...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2021-12-01
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| Series: | Foundations of Management |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/fman-2021-0013 |
| _version_ | 1798013944663638016 |
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| author | Martono S. Yulianto Arief Wijaya Angga Pandu |
| author_facet | Martono S. Yulianto Arief Wijaya Angga Pandu |
| author_sort | Martono S. |
| collection | DOAJ |
| description | Inter-industry has various capital structures to take advantage of growth opportunities due to agency differences and information asymmetric problems. This research aims to analyze: (1) the differences in leverage between industries and (2) the impact of shareholders–debtholders conflict and information asymmetric on growth opportunities. The firm-level data used is extracted from Indonesia Stock Exchange's annual reports from 2008 to 2019. Authors used the analysis of variance (ANOVA). The findings show differences in leverage between industries. However, they are relatively stable and not excessive for assets to prevent conflicts between managers and shareholders with debtholders. Equity is also not used to utilize growth to reduce the discretionary power (dilution) of shareholders. As a result, the use of opportunities and growth is limited. This study identifies agency problems and asymmetric information that determines independent companies' decisions in exploiting growth opportunities. |
| first_indexed | 2024-04-11T15:10:56Z |
| format | Article |
| id | doaj.art-c0c0e420b30a4907922bac7bece5157c |
| institution | Directory Open Access Journal |
| issn | 2300-5661 |
| language | English |
| last_indexed | 2024-04-11T15:10:56Z |
| publishDate | 2021-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Foundations of Management |
| spelling | doaj.art-c0c0e420b30a4907922bac7bece5157c2022-12-22T04:16:40ZengSciendoFoundations of Management2300-56612021-12-0113117118210.2478/fman-2021-0013Growth Opportunities Utilization: Debt Overhang or Asymmetric Information?Martono S.0Yulianto Arief1Wijaya Angga Pandu2Universitas Negeri Semarang, Faculty of Economics, Department of Management, INDONESIAUniversitas Negeri Semarang, Faculty of Economics, Department of Management, INDONESIAUniversitas Negeri Semarang, Faculty of Economics, Department of Management, INDONESIAInter-industry has various capital structures to take advantage of growth opportunities due to agency differences and information asymmetric problems. This research aims to analyze: (1) the differences in leverage between industries and (2) the impact of shareholders–debtholders conflict and information asymmetric on growth opportunities. The firm-level data used is extracted from Indonesia Stock Exchange's annual reports from 2008 to 2019. Authors used the analysis of variance (ANOVA). The findings show differences in leverage between industries. However, they are relatively stable and not excessive for assets to prevent conflicts between managers and shareholders with debtholders. Equity is also not used to utilize growth to reduce the discretionary power (dilution) of shareholders. As a result, the use of opportunities and growth is limited. This study identifies agency problems and asymmetric information that determines independent companies' decisions in exploiting growth opportunities.https://doi.org/10.2478/fman-2021-0013independent companyagency probleminformation asymmetricg24g30g32 |
| spellingShingle | Martono S. Yulianto Arief Wijaya Angga Pandu Growth Opportunities Utilization: Debt Overhang or Asymmetric Information? Foundations of Management independent company agency problem information asymmetric g24 g30 g32 |
| title | Growth Opportunities Utilization: Debt Overhang or Asymmetric Information? |
| title_full | Growth Opportunities Utilization: Debt Overhang or Asymmetric Information? |
| title_fullStr | Growth Opportunities Utilization: Debt Overhang or Asymmetric Information? |
| title_full_unstemmed | Growth Opportunities Utilization: Debt Overhang or Asymmetric Information? |
| title_short | Growth Opportunities Utilization: Debt Overhang or Asymmetric Information? |
| title_sort | growth opportunities utilization debt overhang or asymmetric information |
| topic | independent company agency problem information asymmetric g24 g30 g32 |
| url | https://doi.org/10.2478/fman-2021-0013 |
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