Managerial Optimism  and Debt Financing: Case Study on Indonesia Manufacturing Listed Firms

Memarista, Gesti

doi:10.26905/jkdp.v20i3.257

Cited by 4 publications

(6 citation statements)

References 22 publications

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“…Specifically, someone who has an extrovert personality with a more sensation-seeking attitude led to a more aggressive investment risk appetite (Wasiuzzaman & Edalat, 2016). Furthermore, the extrovert investor is also optimistic or even overestimate their investment return, so they can also have a higher investment risk appetite (Memarista, 2016) Concerning risk-taking behavior, the users of social networking sites tend to be more risk-taker person instead of to the person who has not Instagram (Fogel & Nehmad, 2009). Generally, the young risk-averse investor is being more silent observer about their colleague posts.…”

Section: Extroversion Personality and Investment Risk Appetitementioning

confidence: 99%

Young Investors’ Instagram Usage Behavior and Investment Risk Appetite

Memarista

Puspita²

2021

Manag. Research. Behav. J.

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Online Social Network Sites (SNSs) provides a lot of information to understanding young investor behavior. As the interest of financial practitioners, the young investor has their own risk tolerance. So, this study aims to predict the investment risk appetite through the social networking sites (SNSs) as one of huge informations exchange platforms by using young investors’ Instagram usage behavior. This research uses investment risk appetite and extroversion personality as the dependent variables. Moreover, number of followers on Instagram, time spent on Instagram, frequency of log on to Instagram, the use of Instagram for self-expression, and the use of Instagram for social connection as the independent variables. The researchers use 300 young stock investors through online questionnaire. The results study show that number of followers on Instagram and the use of Instagram for social connection significantly affect the extroversion personality, the extroversion personality significantly affect the investment risk appetite. Otherwise, time spent on Instagram, frequency of log on to Instagram, the use of Instagram for self-expression do not significantly affect the extroversion personality. This result obtains the probability of understanding the young investor’s risk appetite through their Instagram usage behavior, so the financial consultant can gather the information to understand their current social network activities.

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Section: Extroversion Personality and Investment Risk Appetitementioning

confidence: 99%

Young Investors’ Instagram Usage Behavior and Investment Risk Appetite

Memarista

Puspita²

2021

Manag. Research. Behav. J.

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“…The empirical relationship that has been carried out in Indonesia confirmed that debt has a negative influence on the value of the company. The studies were previously carried out by (Handriani et al, 2016;Memarista, 2016;Cheryta et al, 2018). Therefore, the fourth empirical proposition based on POT theory is: H4: Debt is negatively related to firm value…”

Section: The Effect Of Debt On Firm Valuementioning

confidence: 99%

The Effect of Innovational Performance on Determining Firm Value: Evidence from Indonesia

Handriani

2020

JDM

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This study explores the most significant determinant of capital structure towards the value of manufacturing companies in Indonesia. Multiple regression models were used as statistical tools to investigate the most significant determinants of the firm value of manufacturing companies in Indonesia for a sample of 300 manufacturing firms listed on the Indonesia Stock Exchange. The results showed that profitability, company size, dividend, investment, and innovational performance were positively related to firm value. Debt was negatively related to firm value and dividend was an insignificant firm value determinant. Meanwhile, the influence of innovational performance variables mediating the effect of investment on firm value showed that the role of mediation innovational performance was able to increase the influence of total investment on firm value. Furthermore, empirical findings will help company managers to make decisions about the attempts to increase the firm value.

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“…It is because the managers believe that the company will get the benefit of them. The excessive assessment shows the manager optimism (Memarista, 2016). But, the firm cannot borrow the money to fund this expense.…”

Section: Sunk Cost Dilemma Behavior: the Contribution Marketing Expenmentioning

confidence: 99%

Sunk Cost Dilemma Behavior: The Contribution Marketing Expenses towards Financial Performance

Memarista

Gestanti

2018

Jurnal Keuangan Dan Perbankan

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Marketing expenses can drove the financial performance of a company, but sometimes it was only a sunk cost. The sunk cost dilemma behavior can confuse a financial manager, confounding decisions about whether to invest in marketing. Thus, this study aimed to explain the relationship between marketing expenses and profitability. The research subjects were manufacturing firms listed on the Indonesia Stock Exchange between 2012 and 2016. The results showed that marketing-related research and development expenses, selling expenses, and operating cash flow had a significant positive relationship with return on assets (ROA) and return on equity (ROE). Moreover, lagged research and development expenses-specifically, expenses from the previous four years (RnDt-4)-had a significant effect on ROA and ROE. Leverage had a significant negative effect on ROA and ROE. On the other hand, firm size had no significant impact on profitability. The findings showed that marketing expenses were not a sunk cost; they were an investment that leads to good financial performance. Greater investments in marketing expected to entice consumers bought a company's products and created more profitability, leading to improved financial performance. AbstrakBeban pemasaran dapat mempengaruhi kinerja keuangan perusahaan, tetapi kadangkala beban pemasaran hanya sekedar sunk cost. Dilema sunk cost behavior dapat membingungkan manajer keuangan ketika mengambil keputusan investasi yang terkait pemasaran. Penelitian ini bertujuan untuk menganalisa pengaruh beban pemasaran terhadap profitabilitas. Subyek penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia selama 2012 hingga 2016. Hasil penelitian menunjukkan bahwa beban research and development, beban penjualan, dan operating cash flow berpengaruh signifikan positif terhadap return on assets (ROA) dan return on equity (ROE). Selain itu, beban lagged research and development pada empat tahun sebelumnya (RnD t-4 ) berpengaruh signifikan terhadap ROA dan ROE. Leverage berpengaruh negatif signifikan terhadap ROA dan ROE. Sebaliknya, firm size tidak berpengaruh signifikan terhadap profitabilitas. Hasil penelitian ini menunjukkan bahwa beban pemasaran bukan sunk cost. Beban pemasaran dapat menjadi investasi untuk dapat menghasilkan kinerja keuangan yang baik. Investasi yang lebih besar terkait hal pemasaran diharapkan menarik konsumen untuk membeli produk perusahaan dan menciptakan keuntungan yang lebih banyak, yang mengarah pada peningkatan kinerja keuangan.

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Managerial Optimism and Debt Financing: Case Study on Indonesia Manufacturing Listed Firms

Cited by 4 publications

References 22 publications

Young Investors’ Instagram Usage Behavior and Investment Risk Appetite

Young Investors’ Instagram Usage Behavior and Investment Risk Appetite

The Effect of Innovational Performance on Determining Firm Value: Evidence from Indonesia

Sunk Cost Dilemma Behavior: The Contribution Marketing Expenses towards Financial Performance

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