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Capital structure and industrial factors: An Industrial organization perspective ? Indonesia evidence
The Industrial factors have not received much attention yet in study of capital structure, and they are still under explore. This research has four purposes, i.e. : 1) to examine the influences of industrial factors on the capital structure; 2) to examine the role ofthe industrial factors on optimal capital structure; 3) to examine the influences of industrial factors on the capital structure adjustment , and 4) to examine the influences of the capital structure on the industrial factors. The main contribution of this research is to explain the influences of the industrial factors on the capital structure by Industrial Organization perspective. I discuss about the influence of the industrial factors on the capital structure by using this perspective and mapping theories and empirical evidences of the previous researchers using the Structure-Conduct ?Performance (SCP) approach. Moreover, I do the empirical research on the reciprocal influences of the industrial factors and the capital structure, and choose three factors of industrial, namely: market structure and industrial competition, employees and labour union, and product diversification. Those tree factors then are developed into seven variables. To analiyzed, this research use Multi trait, Multi method ? MTMM approach. Sample used are 83 firms of 13 sub-sector manufacturing industry in Indonesia. As to the first purpose, I find that : 1) Number of Firms in Industry (NFI) has negative influences on the firm leverage and has an inverse U impact to the leverage; 2) the more Industry Competitive Dynamics (ICD), the lower the firm debt; 3) the hypothesis of negative influences of Firm Responses to Industrial competition (FRI) on the firm leverage has not been proven; 4) the Number of Employees in Industry (NEI) has positif influences toward the leverage; 5) the Employees? Share of firm Quasi Rents (ESQ) has positif influences on the capital structure; 6) the Category of Product Diversification (CPD) has negative influences on the capital structure; and 7) the Degree of Relatedness of Diversification (DRD) has negative influences on the capital structure. The finding in the second purpose isthat median is not the best proxy and the industrial factors improve the optimal capital structure proxy. In regards with the third purpose, I find that by including the industrial factors to estimate the target leverage, the adjustment speed time to the leverage target is not as long as the adjustment speed time of the previous model. The last purpose, in terms the influences of the capital structure on: a) market structure and industrial competition support the predatory theory; b) employees and labour union approve that the capital structure gives information signs and alerts market perception about future returns; c) product diversification supports the agency theory that managers are contractually bound to repay the interest payments, the creation of debt reduce the amount of available cash for managers to spend on wasteful expenditures..Printed Material.21/07/2016
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| DMA 0184 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Depok Universitas Indonesia., 2016 |
|---|---|
| Edisi | - |
| Subjek | Capital structure Employees Market structure Industrial Competition Product Diversification industrial factor industrial organization |
| ISBN/ISSN | - |
| Klasifikasi | - |
| Deskripsi Fisik | xiii, 174 p. : ill. ; 29 cm. |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |