An Empirical Analysis Of Debt-equity Choice In Indonesian Companies.
This study offers new insights by employing Indonesian data. The uniqueness of Indonesian companies is reflected by the common occurrence of ownership concentration among a few large families and affiliation with a corporate group in which seems nonexistent in many developed countries. With regar...
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| Format: | Thesis |
| Language: | English |
| Published: |
2004
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| Online Access: | http://eprints.usm.my/46656/1/Augustinus%20Setiawan%20Santoso.pdf |
| _version_ | 1825905600502956032 |
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| author | Santoso, Augustinus Setiawan" |
| author_facet | Santoso, Augustinus Setiawan" |
| author_sort | Santoso, Augustinus Setiawan" |
| collection | USM |
| description | This study offers new insights by employing Indonesian data. The uniqueness of
Indonesian companies is reflected by the common occurrence of ownership
concentration among a few large families and affiliation with a corporate group in
which seems nonexistent in many developed countries. With regard to the
methodology problem, this study uses simultaneous equations model to overcome the
endogeneity problem in debt-equity study. It is reported that the external block
ownership has dominant position by having majority control and impact on powerless
Indonesian managers. The inadequate legal framework for investors' protection,
insufficient internal financing and improper development of the capital market occur.
With regard to this situation, debt-equity choice was widely practiced. There is
evidence that Indonesian companies relied heavily on loans to finance unrealistic
rapid corporate expansion. The insignificant relationship between the level of debt
and tangibility of assets and profitability indicate the appearance of moral hazard
problem before the crisis |
| first_indexed | 2024-03-06T15:36:53Z |
| format | Thesis |
| id | usm.eprints-46656 |
| institution | Universiti Sains Malaysia |
| language | English |
| last_indexed | 2024-03-06T15:36:53Z |
| publishDate | 2004 |
| record_format | dspace |
| spelling | usm.eprints-466562020-06-30T06:40:32Z http://eprints.usm.my/46656/ An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. Santoso, Augustinus Setiawan" HD28-70 Management. Industrial Management This study offers new insights by employing Indonesian data. The uniqueness of Indonesian companies is reflected by the common occurrence of ownership concentration among a few large families and affiliation with a corporate group in which seems nonexistent in many developed countries. With regard to the methodology problem, this study uses simultaneous equations model to overcome the endogeneity problem in debt-equity study. It is reported that the external block ownership has dominant position by having majority control and impact on powerless Indonesian managers. The inadequate legal framework for investors' protection, insufficient internal financing and improper development of the capital market occur. With regard to this situation, debt-equity choice was widely practiced. There is evidence that Indonesian companies relied heavily on loans to finance unrealistic rapid corporate expansion. The insignificant relationship between the level of debt and tangibility of assets and profitability indicate the appearance of moral hazard problem before the crisis 2004 Thesis NonPeerReviewed application/pdf en http://eprints.usm.my/46656/1/Augustinus%20Setiawan%20Santoso.pdf Santoso, Augustinus Setiawan" (2004) An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. PhD thesis, Universiti Sains Malaysia. |
| spellingShingle | HD28-70 Management. Industrial Management Santoso, Augustinus Setiawan" An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. |
| title | An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. |
| title_full | An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. |
| title_fullStr | An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. |
| title_full_unstemmed | An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. |
| title_short | An Empirical Analysis Of Debt-equity Choice In Indonesian Companies. |
| title_sort | empirical analysis of debt equity choice in indonesian companies |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/46656/1/Augustinus%20Setiawan%20Santoso.pdf |
| work_keys_str_mv | AT santosoaugustinussetiawan anempiricalanalysisofdebtequitychoiceinindonesiancompanies AT santosoaugustinussetiawan empiricalanalysisofdebtequitychoiceinindonesiancompanies |