The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012
The theory of capital structure has experienced remarkable development. This development enables companies to have many options to consider the external factors in determining various compositions of the companies debts and equities. In this study, the researcher uses theoretical basis of Market Tim...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
STIE Perbanas Surabaya
2014-12-01
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| Series: | Indonesian Accounting Review |
| Subjects: | |
| Online Access: | https://journal.perbanas.ac.id/index.php/tiar/article/view/330 |
| _version_ | 1818286396014592000 |
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| author | Rezza Arlinda Sarwendhi Agus Samekto |
| author_facet | Rezza Arlinda Sarwendhi Agus Samekto |
| author_sort | Rezza Arlinda Sarwendhi |
| collection | DOAJ |
| description | The theory of capital structure has experienced remarkable development. This development enables companies to have many options to consider the external factors in determining various compositions of the companies debts and equities. In this study, the researcher uses theoretical basis of Market Timing Theory (MTT) introduced by Baker and Wurgler (2002). The result of this study indicates that marketto-book ratio has a negative effect on the level of company leverage. This is also proven on the factors of earning after tax and asset structure of the company. The implication of this study is that when the company obtains lower level of leverage, there will be overvalue on the stock price, and it would be the right time for the company to release the shares. |
| first_indexed | 2024-12-13T01:23:55Z |
| format | Article |
| id | doaj.art-d4d63e0a2f0e404cb324b44693d7ddf2 |
| institution | Directory Open Access Journal |
| issn | 2086-3802 2302-822X |
| language | English |
| last_indexed | 2024-12-13T01:23:55Z |
| publishDate | 2014-12-01 |
| publisher | STIE Perbanas Surabaya |
| record_format | Article |
| series | Indonesian Accounting Review |
| spelling | doaj.art-d4d63e0a2f0e404cb324b44693d7ddf22022-12-22T00:04:10ZengSTIE Perbanas SurabayaIndonesian Accounting Review2086-38022302-822X2014-12-0142149156http://dx.doi.org/10.14414/tiar.v4i02.330The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012Rezza Arlinda Sarwendhi0Agus Samekto1STIE Perbanas SurabayaSTIE Perbanas SurabayaThe theory of capital structure has experienced remarkable development. This development enables companies to have many options to consider the external factors in determining various compositions of the companies debts and equities. In this study, the researcher uses theoretical basis of Market Timing Theory (MTT) introduced by Baker and Wurgler (2002). The result of this study indicates that marketto-book ratio has a negative effect on the level of company leverage. This is also proven on the factors of earning after tax and asset structure of the company. The implication of this study is that when the company obtains lower level of leverage, there will be overvalue on the stock price, and it would be the right time for the company to release the shares.https://journal.perbanas.ac.id/index.php/tiar/article/view/330market-to-book-ratio;market timing theory;book leverage;market leverage |
| spellingShingle | Rezza Arlinda Sarwendhi Agus Samekto The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012 Indonesian Accounting Review market-to-book-ratio;market timing theory;book leverage;market leverage |
| title | The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012 |
| title_full | The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012 |
| title_fullStr | The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012 |
| title_full_unstemmed | The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012 |
| title_short | The effect of market-to-book ratio, asset structure, and earning after tax on the level of leverage in non-financial companies listed in Indonesia Stock Exchange 2007-2012 |
| title_sort | effect of market to book ratio asset structure and earning after tax on the level of leverage in non financial companies listed in indonesia stock exchange 2007 2012 |
| topic | market-to-book-ratio;market timing theory;book leverage;market leverage |
| url | https://journal.perbanas.ac.id/index.php/tiar/article/view/330 |
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