The existance of target capital structure on Indonesian firms. A dynamic approach

Very limited studies have been done on the capital structure of Indonesian firms emphasizing on the existence of target capital structure and the affecting determinants and also the speed of adjustment to target leverage. Thus, this study aims to investigate these issues among the firms in Indonesia...

Full description

Bibliographic Details
Main Author:	Haron, Razali
Format:	Conference or Workshop Item
Language:	English English
Published:	2014
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/36793/ http://irep.iium.edu.my/36793/ http://irep.iium.edu.my/36793/1/2014_ISTMET.pdf http://irep.iium.edu.my/36793/3/36793_target%20capital%20structure_scopus.pdf

id	iium-36793
recordtype	eprints
spelling	iium-367932017-09-19T07:39:19Z http://irep.iium.edu.my/36793/ The existance of target capital structure on Indonesian firms. A dynamic approach Haron, Razali HG4001 Financial management. Business finance. Corporation finance. Very limited studies have been done on the capital structure of Indonesian firms emphasizing on the existence of target capital structure and the affecting determinants and also the speed of adjustment to target leverage. Thus, this study aims to investigate these issues among the firms in Indonesia by using a dynamic model. This study finds that Indonesian firms do employ target capital structure which is influenced by certain firm characteristics like profitability, business risk, firm size and liquidity in their capital structure and they also time their security issuance. Being deviated from target from time to time these firms partially adjust indicating a support for the dynamic trade-off theory. There are also influences of the pecking order and the market timing theories in the capital structure decisions of these firms. This study contributes to the literature by offering insights of the capital structure practice and the adjustment speed to target capital structure of firms in Indonesia and fill the gap in the literature. 2014-05-27 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/36793/1/2014_ISTMET.pdf application/pdf en http://irep.iium.edu.my/36793/3/36793_target%20capital%20structure_scopus.pdf Haron, Razali (2014) The existance of target capital structure on Indonesian firms. A dynamic approach. In: 2014 International Symposium on Technology Management And Emerging Technologies (ISTMET 2014), 27-29 May 2014, Bandung, Indonesia. http://istmet.files.wordpress.com/2013/10/program-schedule-istmet.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Haron, Razali The existance of target capital structure on Indonesian firms. A dynamic approach
description	Very limited studies have been done on the capital structure of Indonesian firms emphasizing on the existence of target capital structure and the affecting determinants and also the speed of adjustment to target leverage. Thus, this study aims to investigate these issues among the firms in Indonesia by using a dynamic model. This study finds that Indonesian firms do employ target capital structure which is influenced by certain firm characteristics like profitability, business risk, firm size and liquidity in their capital structure and they also time their security issuance. Being deviated from target from time to time these firms partially adjust indicating a support for the dynamic trade-off theory. There are also influences of the pecking order and the market timing theories in the capital structure decisions of these firms. This study contributes to the literature by offering insights of the capital structure practice and the adjustment speed to target capital structure of firms in Indonesia and fill the gap in the literature.
format	Conference or Workshop Item
author	Haron, Razali
author_facet	Haron, Razali
author_sort	Haron, Razali
title	The existance of target capital structure on Indonesian firms. A dynamic approach
title_short	The existance of target capital structure on Indonesian firms. A dynamic approach
title_full	The existance of target capital structure on Indonesian firms. A dynamic approach
title_fullStr	The existance of target capital structure on Indonesian firms. A dynamic approach
title_full_unstemmed	The existance of target capital structure on Indonesian firms. A dynamic approach
title_sort	existance of target capital structure on indonesian firms. a dynamic approach
publishDate	2014
url	http://irep.iium.edu.my/36793/ http://irep.iium.edu.my/36793/ http://irep.iium.edu.my/36793/1/2014_ISTMET.pdf http://irep.iium.edu.my/36793/3/36793_target%20capital%20structure_scopus.pdf
first_indexed	2023-09-18T20:52:44Z
last_indexed	2023-09-18T20:52:44Z
_version_	1777410102964256768

The existance of target capital structure on Indonesian firms. A dynamic approach

Similar Items