Comparative analysis of company market reactions on right issue for pay debt and investment

Kusuma, Putu Sri Arta Jaya; Yasa, Gerianta Wirawan

doi:10.21744/irjmis.v6n3.626

Cited by 5 publications

(4 citation statements)

References 5 publications

(8 reference statements)

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“…The smaller the value of the debt covenant slack, the closer the company to the breach of its debt covenant. From the debt covenant hypothesis perspectives, it means that companies that tend to do earnings management are those whose value of the debt covenant slack tends to be small (Demerjian & Owens, 2014;Kusuma & Yasa, 2019;Dewi et al, 2018). This has been confirmed by empirical findings from Kim et al, (2010) and Franz et al, (2014), who found that the debt covenant slack negatively affects the earnings management.…”

Section: Introductionmentioning

confidence: 79%

Debt covenant slack, earnings management, and value relevance of accounting information

Dewi

Wirama

2019

irjmis

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This study aims to examine the effect of debt covenant slack on the value relevance of accounting information, and whether earnings management works as an intervening variable. A total of 40 non-financial companies listed in Indonesia Stock Exchange from 2013 to 2017 were selected as sample. Three hypotheses were tested using partial least square and analyzed via path analysis. This study found that debt covenant slack positively affects the value relevance of accounting information. Possibly, the tendency of small debt covenant slacks in the firms causing the information of firms’ performance to be less relevant for the investor because they believe that the firms will prioritize the debt payments rather than dividends. Furthermore, empirical evidence from this study indicates that debt covenant slack affects investors’ decision in using firms’ performance information. However, no statistically significant effect was found neither on the relationship between debt covenant slack and earnings management nor on the relationship between earnings management and the value relevance of accounting information. Hence, earnings management is not an intervening variable in the effect of debt covenant slack on the value relevance of accounting information.

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Section: Introductionmentioning

confidence: 79%

Debt covenant slack, earnings management, and value relevance of accounting information

Dewi

Wirama

2019

irjmis

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“…The informants representing the local government apparatus agreed that in the national context, the right time dimension was long ago when Bung Karno proclaimed Indonesian independence, but because Indonesia was currently in a COVID-19 pandemic situation and the era of "hyper-competition" D'Aveni, (1998) so now the urgency and significance are increasingly felt. Therefore, efforts to re-actualize the spiritual character of entrepreneurship for the millennial generation are essential because social, cultural, and local economic changes lead to the growth of 'spiritual entrepreneurship (Kusuma & Yasa, 2019;Arnawa et al, 2019).…”

Section: Resultsmentioning

confidence: 99%

Reframing the competitiveness strategy of Bugis traders based on spiritual entrepreneurship after the COVID-19 pandemic in Indonesia

et al. 2021

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The reframing of the competitiveness strategy of Bugis traders after the COVID-19 pandemic situation is oriented towards practicing the spiritual values ??of entrepreneurship. Reframing the Bugis trader's competitiveness strategy in the post Pandemic situation is oriented to the practice of spiritual values ??of entrepreneurship, as well as confirming public understanding that "the Bugis are the Black Chinese of Indonesia." Bugis traders who are characterized by spiritual entrepreneurship are strict on principle, "Resopa temmangingi mallomo naletei pammase Dewata" based on information and communication technology. This study combines normative research methods with descriptive methods in researching reframing the competitiveness strategies of Bugis traders who live on the shores of TempeLake, Indonesia. The results showed strengthening the basic values ??and orientation of the religious values ??of Bugis traders was a manifestation of reframing its strategy. There are basic values ??and orientations of social, economic values ??of Bugis traders based on spiritual entrepreneurship, namely faith, piety, morality, empathy or caring, visionary, fathonah, Amanah, siddiq, tabligh, istiomah. This strengthening of social, cultural, local economic values ??based on spiritual entrepreneurship supports the reframing of the competitive strategy of Bugistraders in transacting through market space as necessity to learn from large-scale social-distancing situations and enter NENOLE conditions.

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“…The results of the calculation of the coefficient of determination of Path Analysis in this study are presented in Table 5 as follows: (Kusuma & Yasa, 2019;Putra et al, 2020). Hypothesis effect of debt, market power, efficiency, prospects and risks to corporate performance and its impact on the dividend payout ratio share data manufacturing sector Effect(direct effect) shown in the table above can be interpreted as follows; The path parameter coefficient that states the direct effect of debt on company performance is -0.277 with a critical value of -2.922 and a P value of > 0.05, because the value of -Z<-1.96 and P>0.05 (significant at level 5 %), then H0 is rejected, it means; there is a direct negative and significant effect between the variable debt on the company's performance in the manufacturing sector shares.…”

Section: Coefficient Of Determinationmentioning

confidence: 99%

effect of efficiency, market power, debt, and risk on company performance and their impact on dividend policy on the manufacturing sector in the Indonesia stock exchange

Harahap¹,

Mustaruddin

Rustam

2021

ijbem

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This study is to determine the effect of efficiency, debt, market power, prospects, and risks to company performance and their impact on dividend policy in companies listed on the Indonesia Stock Exchange (IDX). The sample in this study is a manufacturing sector company listed on the Indonesia Stock Exchange which pays dividends continuously during the study period. Researchers use path analysis (path analysis). Path analysis is a unit of multivariate statistical analysis that combines multiple linear regression analysis and simple regression analysis simultaneously with the addition of a mediating variable (intervening) or a reinforcing variable (moderator). There is a negative and significant direct influence between the debt variables on the company's performance. There is a negative and significant direct effect between the variables of Efficiency on Company Performance. There is a direct positive and insignificant effect between the Prospect variable on the Company's Performance. There is a direct positive and insignificant effect between the variables of Risk on Performance. There is a positive and significant direct effect between the variables of the Company's Performance on the Dividend Payout Ratio in the manufacturing sector.

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Comparative analysis of company market reactions on right issue for pay debt and investment

Cited by 5 publications

References 5 publications

Debt covenant slack, earnings management, and value relevance of accounting information

Debt covenant slack, earnings management, and value relevance of accounting information

Reframing the competitiveness strategy of Bugis traders based on spiritual entrepreneurship after the COVID-19 pandemic in Indonesia

effect of efficiency, market power, debt, and risk on company performance and their impact on dividend policy on the manufacturing sector in the Indonesia stock exchange

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