DEBT CONSTRAINT AND DEBT FACILITATE EXPROPRIATION TO PERFORMANCE: ASSET UTILIZATION EFFICIENCY AS MODERATING

Putu Anom , Mahadwartha and Fitri, Ismiyanti (2018) DEBT CONSTRAINT AND DEBT FACILITATE EXPROPRIATION TO PERFORMANCE: ASSET UTILIZATION EFFICIENCY AS MODERATING. In: Global Conferences on Business and Social Sciences 7th, 20-21 Agustus 2018, Columbo Sri lanka.

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Abstract

This research purpose is to test debt constraint expropriation (DCE) and debt facilitates expropriation (DFE) condition when firm has higher or lower asset utilization. The use of debt in debt constraint expropriation (DCE) condition has a significant positive effect on firm’s market performance and it is higher for firm with high asset utilization efficiency than firm with low asset utilization efficiency. The use of debt in debt facilitate expropriation (DFE) condition has positive non-significant effect on the firm’s market performance and it is higher for firm with low asset utilization efficiency compared to firm with high asset utilization efficiency. This research uses moderated regression analysis (MRA) to examine the hypotheses, to test the moderating effect to the model, and Wald coefficient test to get the strength differences effect between moderating variable. The uses of debt in debt facilitate expropriation (DFE) condition has a negative effect on the firm’s market performance. The use of debt in debt constraint expropriation (DCE) condition has a significant positive effect on firm’s market performance and it is higher for firm with high asset utilization efficiency than firm with low asset utilization efficiency. This research contributes on rules of debt (capital structure) to firm’s motivation of transferring wealth among shareholders and debtholders, vice versa.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: debt, expropriation, asset utilization, performance
Subjects: H Social Sciences > HG Finance
Divisions: Postgraduate Programs > Master Program in Management
Depositing User: Putu Anom mahadwartha 31140
Date Deposited: 29 Jan 2019 07:50
Last Modified: 29 Jan 2019 07:50
URI: http://repository.ubaya.ac.id/id/eprint/34233

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