Pengaruh Leverage dan Kebijakan Dividen terhadap Investasi Perusahaan
Abstract
In an imperfect capital market, funding decisions and dividend policy affect investment decisions. Sources of funds have different costs, so the cost of these funds will affect the analysis of investment feasibility. Agency costs both from debt and dividends can limit the company's investment. This study contributes to explaining how leverage and dividend policy influence investment decisions in companies in Indonesia. This study uses panel data regression. This study finds that the effect of dividends is stronger in limiting the company's investment. A high dividend payout reduces the company's investment the following year, whereas. leverage has no effect on the company's investment. Another finding is that investment opportunities have a positive effect on company investment, while company size has no effect on investment.
References
Adam, T. & Goyal, V.K., 2008, The investment opportunity set and its proxy variables, Journal of Financial Research, 31, 1, 41–63.
Arif Khan, M., Qin, X. & Jebran, K., 2019, Does uncertainty influence the leverage-investment association in Chinese firms?, Research in International Business and Finance, 50, December 2018, 134–152. https://doi.org/10.1016/j.ribaf.2019.04.006.
Chava, S. & Roberts, M.R., 2008, How does financing impact investment? the role of debt covenants, Journal of Finance, 63, 5, 2085–2121.
Dewasiri, N.J., Yatiwelle Koralalage, W.B., Abdul Azeez, A., Jayarathne, P.G.S.A., Kuruppuarachchi, D. & Weerasinghe, V.A., 2019, Determinants of dividend policy: evidence from an emerging and developing market, Managerial Finance, 45, 3, 413–429.
Ding, S., Knight, J. & Zhang, X., 2019, Does China overinvest? Evidence from a panel of Chinese firms, European Journal of Finance, 25, 6, 489–507. http://dx.doi.org/1351847X.2016.1211546.
Goodell, J., Goyal, A. & Huang, W., 2017, Dividends and underinvestment in China : Did foreign investors export liquidity during the global financial crisis ?,
Harakeh, M., 2020, Dividend policy and corporate investment under information shocks, Journal of International Financial Markets, Institutions and Money, 65, xxxx, 101184. https://doi.org/10.1016/j.intfin.2020.101184.
Jensen, M.C. & Meckling, W.H., 1976, Theory of the firm: managerial behavior, agency cost and ownership structure, Journal of Financial Economics, 3, 305–360.
Kadapakkam, P.R., Kumar, P.C. & Riddick, L.A., 1998, The impact of cash flows and firm size on investment: The international evidence, Journal of Banking and Finance, 22, 3, 293–320.
Kim, J., Lee, K.H. & Lie, E., 2017, Dividend Stickiness, Debt Covenants, and Earnings Management, Contemporary Accounting Research, 34, 4, 2022–2050.
Lang, L., Ofek, E. & Stulz, R.M., 1996, Leverage, investment, and firm growth, Journal of Financial Economics, 40, 1, 3–29.
Modigliani, F. & Miller, M.H., 1958, The cost of Capital Corporation Finance and Theory and the Theory of Invesment, The American Economic Review, XLVIII, 3, 261–297.
Myers, S.C., 1977, Determinants of corporate borrowing, Journal of Financial Economics, 5, 2, 147–175.
Myers, S.C. & Majluf, N.S., 1984, Corporate financing and investment decisions when firms have information that investors do not have, Journal of Financial Economics, 13, 2, 187–221.
Ogden, J.P., Jen, F.C. & O’Connor, P.F., 2003, Advanced corporate finance: policies and strategies, Pearson College Division.
Ramalingegowda, S., Wang, C.-S. & Yu, Y., 2013, The Role of Financial Reporting Quality in Mitigating the Constraining Effect of Dividend Policy on Investment Decisions, The Accounting Review, 88, 3, 1007–1039.
Saif-Alyousfi, A.Y.H., Md-Rus, R., Taufil-Mohd, K.N., Mohd Taib, H. & Shahar, H.K., 2020, Determinants of capital structure: evidence from Malaysian firms, Asia-Pacific Journal of Business Administration, ahead-of-p, ahead-of-print.
Setianto, R.H. & Kusumaputra, A., 2019, Corporate Financial Flexibility, Investment Activities, And Cash Holding: Evidence From Indonesia, Indonesian Capital Market Review, 9, 2.
Sheikh, N.A. & Wang, Z., 2011, Determinants of capital structure An empirical study of firms in manufacturing industry of Pakistan, Managerial Finance, 37, 2, 117–133.
Surasmi, I.A., Martadiani, A.M., Warmana, G.O. & Widnyana, I.W., 2018, Financing Decision and Performance of Manufacturing Companies in Indonesia, The International Journal Of Humanities & Social Studies, 6, 9, 296–300.
Vo, X.V., 2019, Leverage and corporate investment – Evidence from Vietnam, Finance Research Letters, 28, 1–5. https://doi.org/10.1016/j.frl.2018.03.005.
Abstract viewed = 318 times
PDF (Bahasa Indonesia) downloaded = 714 times
