Debt versus Equity—Open Innovation to Reduce Asymmetric Information

Yulianto, Arief; Witiastuti, Rini Setyo; Widiyanto, Widiyanto

doi:10.3390/joitmc7030181

Cited by 9 publications

(6 citation statements)

References 51 publications

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“…The act of consumption carried out every day by anyone, the goal is to obtain the highest possible satisfaction and achieve a level of prosperity in the sense that various kinds of needs are met, both basic needs and secondary needs, luxury goods and physical and spiritual needs. The higher the level of household consumption expenditure, the lower the household income (65)(66)(67)(68)(69) The results of research that household consumption has a positive effect on Gross Regional Domestic Product (GRDP). The results of data processing that have been carried out show that the investment variable has a positive and significant effect on Gross Regional Domestic Product (GRDP) in Indonesia with a coefficient value of 0.052701.…”

Section: Discussionmentioning

confidence: 99%

Impacts of Household Consumption Expenditure on Gross Regional Domestic Product during the COVID-19 Pandemic

Fauziyah,

Kardoyo,

Yulianto

2023

Int J Res Rev

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This study illuminates the consequences of the Covid-19 pandemic, a globally unprecedented event that disturbed world economies. It specifically delves into the impact of changes in household consumption expenditure on Gross Regional Domestic Product (GRDP) in Indonesia. The research's main objective was to elucidate the relationship between alterations in household consumption expenditure and the nation's GRDP from 2019 to 2021, a period significantly influenced by Covid-19. A hypothesis testing study design with a quantitative approach was employed, and secondary data from reliable sources was used to evaluate the hypothesis. The results pointed to a significant relationship between household consumption expenditure and GRDP. The period saw variations in household consumption patterns, directly correlating with the ebb and flow of the regional economy. The research's novelty lies in its contextual use of the Covid-19 pandemic, providing a recent, tangible example of how drastic, unexpected changes in household consumption expenditure can directly affect a region's macroeconomic standing. This study, thus, offers critical insights into economic policymaking, particularly in times of crisis, underscoring the need for dynamic strategies that promptly respond to shifts in household consumption. This benefits not only the scientific community in formulating proactive economic theories but also society by fostering resilient, adaptable economies. Keywords: household consumption expenditure, gross regional domestic product (GRDP), covid-19 pandemic

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Section: Discussionmentioning

confidence: 99%

Impacts of Household Consumption Expenditure on Gross Regional Domestic Product during the COVID-19 Pandemic

Fauziyah,

Kardoyo,

Yulianto

2023

Int J Res Rev

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“…The debt-to-equity ratio (DER) is used as a proxy for the choice between debt and equity issue when financing new investments, as suggested by (Yulianto, et al, 2021). Asymmetric information, which leads to adverse selection, makes firms prefer debt issues over equity.…”

Section: Methodsmentioning

confidence: 99%

Asymmetric Information in New Investment: Evidence in Indonesia

Yulianto,

Widiyanto,

Witiastuti

2023

Foundations of Management

Self Cite

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Intra-industry sectors are producers of asymmetric information, which in turn has an impact on capital structure decisions. The purpose of this study was to determine (1) differences in debt-equity ratio, growth opportunities, firm age, and firm size as firm characteristics and (2) differences in the effect of growth opportunities, firm age, and firm size on the debt-equity ratio between manufacturing and nonmanufacturing firms. We collected 3,063 observation units consisting of 2,628 manufacturing sectors and 435 non-manufacturing sectors in the Indonesia Stock Exchange (IDX) and trimmed the data to eliminate the top and bottom 20%. Manufacturing firms are older and more stable, using their profitability to increase information disclosure. Although they produce lower asymmetric information, they do not prefer external financing as an effort to reduce intervention. In contrast, non-manufacturing firms have less tangible assets as a proportion of their total assets than manufacturing firms and therefore produce less asymmetric information of intrinsic value (tangible assets). As a result, manufacturing firms prefer debt issues over equity issues when financing new investments.

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“…(2008)(2009)(2010)(2011)(2012)(2013), to examine the proposed relationship in different macroeconomic settings. Yulianto et al [26] examined the difference between the absence and presence life cycle stages in technology information digitalization (TID) as a form of open innovation in reducing information asymmetry. Furthermore, companies with asymmetric information prefer debt over equity.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Harymawan et al [18] (i) Investment efficiency (ii) Environmental (iii) Social (iv) Governance Nazir et al [19] (i) Governance (ii) Global technology Akbar et al [20] (i) Financial distress (ii) Corporate restructuring Ryu and won [21] (i) Innovation (ii) Value frim Khoung et al [22] (i) Life cycle (ii) Earning management Yulianto [23] (i) Frim size proxy (ii) Total sales Ahmad et al [24] (i) Life cycle (ii) Investment efficiency Akbar et al [25] (i) Capital management (ii) Profitability (iii) Market performance Yulianto et al [26] (i) Life cycle (ii) Technology information digitalization (TID) Shahzad et al [27] (i) Risk (ii) Emergence (iii) Growth (iv) Decline Ahsan et al [8] (i) Risk (ii) Maturity (iii) Stagnation Complexity nonsystematic risk is higher in the introduction and decline stages and lower in the growth and maturity stages. Also, cash flow fluctuations and information uncertainty differ only in the maturity stage from the stagnation stage, and in this regard, there is no difference between other stages of the life cycle and the stagnation stage.…”

Section: Author Variablesmentioning

confidence: 99%

The Effect of Specific Risk in Various Stages of the Life Cycle of Companies Listed on the Tehran Stock Exchange

et al. 2022

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This research aims to examine the specific risk of companies and their effectiveness in various stages of the company life cycle on state and nonstate ownership. For this purpose, the specific risk was estimated using Fama and French three-factor models, and the research objective was examined by considering the data panel model during the period 2015 to 2020 in a statistical sample consisting of 136 companies active in the Tehran Stock Exchange. For this purpose, the main contribution of research is evaluation of the effect of specific risk in different stages of the life cycle of companies admitted to the Tehran Stock Exchange. Therefore, the main valuable advantage to helping stock managers is assessing the impact of government ownership and nongovernment ownership on the specific risk of companies at different stages of the life cycle. Also, presenting a model to show the effects of dependent and independent variables in order to evaluate the impact of government and nongovernment ownership. The research results confirmed that the specific risk of the company in the stages of introduction, growth, and decline is higher compared to the stages of maturity and stagnation of the life cycle of companies listed on the Tehran Stock Exchange. Because the coefficients of virtual variables related to the life cycle stages of the company are estimated to be significant. Also, the finding confirmed that government ownership significantly affects the relationship between firm risk and life cycle stages in companies listed on the Tehran Stock Exchange. Because, the coefficient of variable state ownership is negative and significant, indicating a lower specific risk in state-owned companies than in nonstate-owned companies.

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Debt versus Equity—Open Innovation to Reduce Asymmetric Information

Cited by 9 publications

References 51 publications

Impacts of Household Consumption Expenditure on Gross Regional Domestic Product during the COVID-19 Pandemic

Impacts of Household Consumption Expenditure on Gross Regional Domestic Product during the COVID-19 Pandemic

Asymmetric Information in New Investment: Evidence in Indonesia

The Effect of Specific Risk in Various Stages of the Life Cycle of Companies Listed on the Tehran Stock Exchange

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