Firm size sensitivity on the correlation between financing choice and firm value

Abstract

This study examines the impact of firm size on the effect of capital structure choice on the firm value in one of the emerging markets, Indonesia. The study of capital structure choice and firm value in emerging markets is captivating due to the different characteristics of its companies as compared to the characteristics of companies in developed countries. To rigorously conduct the research, this study uses annual reports and market value of 1,638 listed non-financial companies as the result of a random sampling method with 7-year observation periods, 2012 until 2018. The finding supports the existing literature that optimal capital structure choice reflects an appropriate mix of debt and the company's equity that enhances the firm value. This means that capital structure is one of the significant aspects of the decision-making of investment by investors. Similar to that in developing countries, increasing long-term debt is a funding option when the internal funds are insufficient. Reducing retained earnings affected by lower profitability level increase corporate long-term debt. Furthermore, the size of a company Yossi Diantimala

Peran Tata Kelola Dan Tanggung Jawab Sosial Dalam Meningkatkan Nilai Perusahaan Dengan Ukuran Perusahaan Sebagai Mediasi

“…Perusahaan mempunyai berbagai tujuan, salah satunya ialah meningkatkan nilai perusahaan (Diantimala et al, 2021). Nilai perusahaan mempunyai pengaruh dalam menentukan keputusan investasi bagi para investor (Atrianingsih & Nyale, 2022).…”

“…Karena tingginya nilai perusahaan akan membuat investor yakin akan prospek dan kinerja perusahaan kedepannya (Gantino & Alam, 2020). Nilai perusahaan dapat dipengaruhi oleh banyak faktor seperti tata kelola dan tanggung jawab sosial (Titisari et al, 2019), dan ukuran perusahaan (Diantimala et al, 2021).…”

“…Beberapa studi sebelumnya memberikan bukti empiris bahwa tata kelola perusahaan meningkatkan nilai perusahaan (Ararat et al, 2017;Khanaghah et al, 2019;Le & Nguyen, 2022;Lozano et al, 2016;Singh et al, 2017;Titisari et al, 2019), tanggung jawab sosial perusahaan meningkatkan nilai perusahaan (Butt et al, 2020;Fuadah & Kalsum, 2021;Khanaghah et al, 2019;Titisari et al, 2019), Ukuran perusahaan meningkatkan nilai perusahaan (Diantimala et al, 2021;Hirdinis, 2019;Nguyen et al, 2021). Namun demikian, ukuran perusahaan pada penelitian ini digunakan sebagai variabel mediasi.…”

Banking stock price movement and macroeconomic indicators: k-means clustering approach

“…Several previous studies that discuss the effect of macroeconomic variables in stock prices are generally separate from the discussion of firm characteristics. In addition, research on the firm characteristics generally uses classical approaches such as capitalization, transaction volume, and firm size (Diantimala et al, 2021;Lim & Hooy, 2011;Widiatmoko et al, 2020;Yang & Pangastuti, 2016). Therefore, this study specifically applies a clustering approach to understand the pattern of stock price movements in response to changes in macroeconomic indicators.…”

Pengaruh Gender Diversity Eksekutif Dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Tax Avoidance Sebagai Intervening

“…Besar kecilnya usaha tersebut ditinjau dari lapangan usaha yang dijalanakan. Penentuan skala besar kecilnya perusahaan dapat ditentukan berdasarkan total penjualan, total asset, rata-rata tingkat penjualan (Diantimala, et, al., 2021).…”