THE STUDY OF DYNAMIC TRADE-OFF CAPITAL STRUCTURE EXISTENCE TO THE NONFINANCIAL BUSINESS ENTITIES LISTED ON INDONESIA STOCK

Endang , Ernawati and Murhadi, Werner Ria (2013) THE STUDY OF DYNAMIC TRADE-OFF CAPITAL STRUCTURE EXISTENCE TO THE NONFINANCIAL BUSINESS ENTITIES LISTED ON INDONESIA STOCK. Proceeding 10th International Annual Symposium on Management . pp. 116-125. ISSN 978-979-99365-7-8

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Abstract

There were 6 variables that significantly influenced the capital structure of business entity which were size, profitability, tangibility, non-debt tax shield, operating risk, and growth. So that this research will use those variables and also capital structure variable measured by the debt. The research will be conducted to the nonfinancial business entities listed on Indonesia Stock Exchange during period 2007-2011. Financial sectors will be eliminated since they had special regulations that greatly affect their funding process. From the obtained results it is known that simultaneously via the F test all independent variables significantly influence the company's debt. Means that the model finds can be used to predict the behavior of the company's debt. Partially, the variables that significantly influence the company's debt is firm size, profitability, tangibility, risk and debt lag period last year. While that does not have significant influence is growing and nondebt tax shield. It also indicated that the speed of adjustment to the company's debt level optimal debt as measured by the value of λ is equal to 1.905, which means that the adjustment in period t-1 into period t more than the level required to achieve the optimal debt (over Adjustment)

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Management
Depositing User: Werner R. Murhadi 31124
Date Deposited: 26 Sep 2014 05:59
Last Modified: 24 Jun 2015 05:03
URI: http://repository.ubaya.ac.id/id/eprint/20909

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