Corporate Financial Strategy in an Emerging Market: Evidence from Indonesia

Alghifari, Erik Syawal; Hermawan, Atang; Gunardi, Ardi; Rahayu, Agus; Wibowo, Lili Adi

doi:10.3390/jrfm15080362

Cited by 11 publications

(10 citation statements)

References 62 publications

(54 reference statements)

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“…With the surplus funds, it can be said that the leadership and staff have worked well in carrying out their duties and responsibilities so that the educational institutions obtain adequate financial benefits. It can also be said that the school's financial management is based on economic and professional principles (Alghifari, Hermawan, Gunardi, Rahayu, & Wibowo, 2022;Zaytsev, Blizkyi, Rakhmeeva, & Dmitriev, 2021). This means that the application of financial management pays attention to the effectiveness and efficiency of financial utilization following the needs of education (Atmadja et al, 2021).…”

Section: Discussionmentioning

confidence: 99%

The Implementation of the Balanced Scorecard for Improving Quality of Education

Dariyo

Uwes

Tumanggor

2022

NJMPI

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The Balanced Score-Card is a principle of managing professional and balanced organizational institutions concerning financial and non-financial aspects. The BSC can be applied to for-profit and non-profit institutions, such as the Putra Satria educational institution. This study uses a qualitative-descriptive approach. It is collecting data by interview, observation, and documentation notes. Data analysis refers to the balanced scorecard theory, which includes financial and non-financial aspects. The result is that the BSC has been implemented well by the Putra Satria Junior High School so that the school has a financial surplus. In addition, internal and external customers aspects of customer satisfaction feel satisfied with school management services. Internal business aspects by carrying out innovations in facilities and infrastructure that have been carried out by school management, as well as innovations in teaching (teaching and learning activities), carried out by teachers. In addition, it was found that the school cares for the development of human resources for teachers and employees through courses, training, seminars, or academic activities that support improving their education.

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Section: Discussionmentioning

confidence: 99%

The Implementation of the Balanced Scorecard for Improving Quality of Education

Dariyo

Uwes

Tumanggor

2022

NJMPI

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“…Creditors should anticipate risks by adjusting the required rate of return on their investments. This was reflected in the higher cost of capital imposed on new loan applications and the weakening of banking stability throughout the COVID-19 outbreak (Alghifari et al , 2022; Elnahass et al , 2021). Therefore, this study proposes the following research questions.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Cost of capital and firm performance of ESG companies: what can we infer from COVID-19 pandemic?

Tanjung

2023

SAMPJ

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Purpose Studies on sustainable finance examine how it is interrelated with economic, social, governance and environmental issues. Using financial data on publicly traded firms in Indonesia, this study aims to explore the interplay between the cost of capital, firm performance and the COVID-19 pandemic. Design/methodology/approach This study uses firm-level data sets of publicly listed firms from 2012 to 2021. The regression analysis reported in the study includes the Driscoll–Kraay estimator, propensity score matching model and fixed-effects regression. Findings The study revealed three significant findings. First, on average, non-environmental, social and governance (ESG) companies’ cost of capital is lower than that of ESG firms. Second, ROE in ESG enterprises is significantly impacted by capital costs. Third, the cost of capital has a negative impact on the market value (Tobin’s q) of non-ESG firms. The study specifically shows that after accounting for the pandemic, ESG firms did not benefit during the troubled COVID-19 crisis after controlling for the pandemic dummy years of 2020 and 2021. These results indicate that the adoption of green or sustainable finance is still in its infancy and that the sector requires more time to establish an enabling environment. Research limitations/implications This study benefits from capital structure and ESG theories. It supports the argument that the debt utilization ratio is still relevant to a company’s value because it affects its financial performance. Moreover, adopting ESG principles helps businesses survive crises. Thus, the analysis confirms the superiority of ESG-based firms. Practical implications This study draws two conclusions. First, the results could be a reference for academics and practitioners to understand the effect of pandemic-related crises on a firm’s capital structure and performance. In terms of survival during a crisis, such as the COVID-19 pandemic, this study demonstrates how firms with strong ESG may perform differently than those without ESG. Second, this study supports the need for an empirical study and examination of the development of sustainable finance in the country while considering setbacks. Social implications The results should be of interest to policymakers who focus on the ESG market and academics conducting ESG-related research on emerging markets. Originality/value This study contributes to the literature by establishing empirical evidence on the relationship between the cost of capital and firm performance of ESG- and non-ESG-rated enterprises in the Indonesian setting while controlling for the impact of the pandemic.

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“…Faktor eksternal yang dimaksud adalah ukuran perusahaan, pertumbuhan penjualan, dan industri tempat perusahaan beroperasi. Besar harapan peneliti agar perusahaan bisa membuat keputusan strategi pendanaan terbaik agar kondisi di pasar modal tetap stabil dan terkendali (Alghifari et al, 2022). Karakteristik perusahaan, seperti ukuran, umur, dan sektor industri, berpengaruh signifikan terhadap kebijakan keuangan perusahaan di Indonesia.…”

Section: Temuanunclassified

Tinjauan Variabel Finansial Pada Capital Market Dengan Pendekatan Chat GPT

Oktavianus¹

2023

Preprint

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Pasar modal telah memegang peranan utama bagi perusahaan dan pemerintahan, terutama sebagai wadah untuk memperoleh dana tambahan demi kelancaran dan pengembangan usaha. Tidak hanya itu, pasar modal menjadi salah satu solusi untuk mengatasi permasalahan ekonomi negara dimana berkaitan dengan pembangunan infrastruktur, sarana, dan prasarana yang menunjang aktivitas ekonomi masyarakatnya. Di sisi lain, ditemukan banyaknya variabel atau determinan yang dapat mempengaruhi kondisi pasar modal, khususnya variabel finansial dari tingkat individu, perusahaan, hingga negara. Maka, penulis melakukan review artikel berdasarkan artikel-artikel penelitian kuantitatif karya dosen ekonomi Indonesia untuk menemukan korelasi antara berbagai variabel finansial dengan pasar modal. Dalam review artikel ini, penulis menggabungkan analisis penulis dengan analisis hasil Artificial Intelligence (AI) yang bernama Chat GPT. Hal tersebut ditujukan untuk memaksimalkan hasil review artikel agar menghasilkan wawasan berkualitas bagi pembaca dan penelitian selanjutnya. Pada akhir artikel, ditemukan bahwa variabel finansial berpengaruh signifikan terhadap pergerakan harga di pasar modal.

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Corporate Financial Strategy in an Emerging Market: Evidence from Indonesia

Cited by 11 publications

References 62 publications

The Implementation of the Balanced Scorecard for Improving Quality of Education

The Implementation of the Balanced Scorecard for Improving Quality of Education

Cost of capital and firm performance of ESG companies: what can we infer from COVID-19 pandemic?

Tinjauan Variabel Finansial Pada Capital Market Dengan Pendekatan Chat GPT

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