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The role of business sophistication, revenue diversification, and labor relations on firm financing choice

We model and empirically estimate the relationship of ordinal scaled dependent variable: firm financing choice with business sophistication, revenue diversification and labor relationship using Indonesian data. We use controlling variables derived from Trade off Theory and Pecking Order Theory l...

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Main Authors: Ariefianto, Moch. Doddy, Trinugroho, Irwan, Yustika, Ahmad Erani, Soedarmono, Wahyoe
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/17083/1/jeko_54%283%29-8.pdf
http://journalarticle.ukm.my/17083/
https://www.ukm.my/fep/jem/content/2020-3.html
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spelling my-ukm.journal.170832021-07-16T02:17:09Z http://journalarticle.ukm.my/17083/ The role of business sophistication, revenue diversification, and labor relations on firm financing choice Ariefianto, Moch. Doddy Trinugroho, Irwan Yustika, Ahmad Erani Soedarmono, Wahyoe We model and empirically estimate the relationship of ordinal scaled dependent variable: firm financing choice with business sophistication, revenue diversification and labor relationship using Indonesian data. We use controlling variables derived from Trade off Theory and Pecking Order Theory literature. We then elaborate the baseline model to include additional categoric variables of location and ownership, besides the interaction terms. The dataset is constructed from World Bank Enterprise Survey Year 2015 and Generalized logistic —partial proportional odds regression is employed as an estimator. We find that better business sophistication leads to greater acceptance to financing from outsiders and more diversified firms tend to prefer external financing. Finally, a better labor relationship corresponds to a greater preference for internal financing. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/17083/1/jeko_54%283%29-8.pdf Ariefianto, Moch. Doddy and Trinugroho, Irwan and Yustika, Ahmad Erani and Soedarmono, Wahyoe (2020) The role of business sophistication, revenue diversification, and labor relations on firm financing choice. Jurnal Ekonomi Malaysia, 54 (3). pp. 101-115. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020-3.html
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description We model and empirically estimate the relationship of ordinal scaled dependent variable: firm financing choice with business sophistication, revenue diversification and labor relationship using Indonesian data. We use controlling variables derived from Trade off Theory and Pecking Order Theory literature. We then elaborate the baseline model to include additional categoric variables of location and ownership, besides the interaction terms. The dataset is constructed from World Bank Enterprise Survey Year 2015 and Generalized logistic —partial proportional odds regression is employed as an estimator. We find that better business sophistication leads to greater acceptance to financing from outsiders and more diversified firms tend to prefer external financing. Finally, a better labor relationship corresponds to a greater preference for internal financing.
format Article
author Ariefianto, Moch. Doddy
Trinugroho, Irwan
Yustika, Ahmad Erani
Soedarmono, Wahyoe
spellingShingle Ariefianto, Moch. Doddy
Trinugroho, Irwan
Yustika, Ahmad Erani
Soedarmono, Wahyoe
The role of business sophistication, revenue diversification, and labor relations on firm financing choice
author_facet Ariefianto, Moch. Doddy
Trinugroho, Irwan
Yustika, Ahmad Erani
Soedarmono, Wahyoe
author_sort Ariefianto, Moch. Doddy
title The role of business sophistication, revenue diversification, and labor relations on firm financing choice
title_short The role of business sophistication, revenue diversification, and labor relations on firm financing choice
title_full The role of business sophistication, revenue diversification, and labor relations on firm financing choice
title_fullStr The role of business sophistication, revenue diversification, and labor relations on firm financing choice
title_full_unstemmed The role of business sophistication, revenue diversification, and labor relations on firm financing choice
title_sort role of business sophistication, revenue diversification, and labor relations on firm financing choice
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/17083/1/jeko_54%283%29-8.pdf
http://journalarticle.ukm.my/17083/
https://www.ukm.my/fep/jem/content/2020-3.html
_version_ 1706958262256009216
score 13.211869

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