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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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Main Author: Santoso, Augustinus Setiawan"
Format: Thesis
Language:English
Published: 2004
Subjects:
HD28-70 Management. Industrial Management
Online Access:http://eprints.usm.my/46656/1/Augustinus%20Setiawan%20Santoso.pdf
http://eprints.usm.my/46656/
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id my.usm.eprints.46656
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spelling my.usm.eprints.46656 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.
institution Universiti Sains Malaysia
building Hamzah Sendut Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Sains Malaysia
content_source USM Institutional Repository
url_provider http://eprints.usm.my/
language English
topic HD28-70 Management. Industrial Management
spellingShingle HD28-70 Management. Industrial Management
Santoso, Augustinus Setiawan"
An Empirical Analysis Of Debt-equity Choice In Indonesian Companies.
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
format Thesis
author Santoso, Augustinus Setiawan"
author_facet Santoso, Augustinus Setiawan"
author_sort Santoso, Augustinus Setiawan"
title An Empirical Analysis Of Debt-equity Choice In Indonesian Companies.
title_short 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_sort empirical analysis of debt-equity choice in indonesian companies.
publishDate 2004
url http://eprints.usm.my/46656/1/Augustinus%20Setiawan%20Santoso.pdf
http://eprints.usm.my/46656/
_version_ 1671340455101464576
score 13.211869

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