Factors Affecting Investment Opportunity Set: A Study of Company Advantages and Limitations
Keywords:
Company Advantages, Company Limitations, , Investment Opportunity Set
Abstract
This study aims to prove the influence of Company advantages - company profitability and size, and company limitations - systematic risk and leverage, on the Investment Opportunity Set (IOS) in automotive companies listed on the Indonesia Stock Exchange during the period 2013 to 2017. There are 5 automotive companies that used as samples based on purposive sampling technique. The results of the study prove that the company's advantages have an effect on IOS, while the company's limitations have no effect on IOS. These results prove that the company must be able to maintain its advantages so that it can have greater growth opportunities. On the other hand, with the lack of evidence of company limitations as a factor affecting IOS, it does not mean that companies are not careful in making financial policies.
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References
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Yendrawati, R., & Adhianza, F.R., (2013). Faktor-faktor yang berpengaruh terhadap Set Kesempatan Investasi (IOS) pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia, Jurnal Inovasi dan Kewirausahaan, Vol. 2 (1), 32-41.
Abor & Bokpin, G., (2010). Investment opportunities, corporate finance, and dividend payout policy Evidence from emerging markets, Studies in Economics and Finance, vol. 27, no. 3, 180-194.
Ardestani, H.S., Rasid, S.Z.A., Basiruddin, R., & Mehri, M. (2013). Dividend payout policy, Investment Opportunity Set, and Corporate Financing in the Industrial Products Sector of Malaysia. Journal of Applied Finance and Banking, Vol. 2 (1), 123-136.
Dewi, N. N. K., & Jati, I. K. (2014). Pengaruh Karakter Eksekutif, Karakteristik Perusahaan, Dan Dimensi Tata Kelola Perusahaan Yang Baik Pada Tax Avoidance Di Bursa Efek Indonesia. E-Jurnal Akuntansi, 6(2), 249–260.
Fairchild, r. (2010). Dividend policy, signaling, and free cash flow: an integrated approach, Managerial Finance, vol. 36, no. 5, 394-413.
ForexIndonesia (2018). Apa Itu Leverage? https://forexindonesia.org/beritaforex/apa-itu-leverage.html, akses January 30, 2018
Gupta, S., & Newberry, K., (1997). Determinants of the variability in corporate effective tax rates: Evidence from longitudinal data. Journal of Accounting and Public Policy, 16(1), 1–34.
Hansen, D.R. & Mowen, M.M. (2009). Managerial Accounting: Akuntansi Manajerial, Edisi 8, Jakarta: Penerbit Salemba Empat.
Hartono, J. (2014). Teori Portofolio dan Analisis Investasi. Yogyakarta: BPFE-Yogyakarta.
IDX, (2019). IDX Statistics 2018, https://www.idx.co.id/media/4865/idx-annual-statistics-2018.pdf, akses 15 Januari 2019.
Lestari, H. (2004). Pengaruh Kebijakan Utang, Kebijakan Dividen, Risiko dan Profitabilitas Perusahaan terhadap Set Kesempatan Investasi. Simposium Nasional Akuntansi VII, Bali.
Martin. (2014). Price to Earnings Ratio, Parameter Penting di Pasar Saham, Artikel Saham seputar Forex. https://www.seputarforex.com/artikel/price-to-earnings-ratio-per-parameter-penting-di-pasar-saham-189779-34, akses January 30, 2018.
Modigliani, F., & Miller, M. H. (1963). Corporate Income Taxes and the Cost of Capital: A Correction. The American Economic Review, 53(3), 433–443.
Mullah, S., (2011). Do emerging market firms follow different dividend policies? An empirical investigation on the pre- and post-reform dividend policy and behavior of Dhaka Stock Exchange-listed firms, Emerald Studies in Economics and Finance, vol. 28, no. 2, 118-135
Myers, S.C., (1977). The determinant of Corporate Borrowing, Journal of Financial Economics, Vol. 5 (2), 147-175.
Nugroho, A., & Suryarini, T., (2018). Determinant of Thin Capitalization in Multinational Companies in Indonesia, Journal of Accounting and Strategic Finance (JASF), Vol 1 (2), 91-100. DOI: https://doi.org/10.33005/jasf.v1i02.27
Nurfitriana, A., & Fachrurrozie, (2018). Profitability in Moderating the effects of Business Risk, Company Growth, and Company Size on Debt Policy, Journal of Accounting and Strategic Finance (JASF), Vol 1 (2), 133-142. DOI: https://doi.org/10.33005/jasf.v1i02.18
Perdana, M.K., & Adriana, C.H. (2018). Factors influencing the Stock Price of Banking Companies in the Indonesia Stock Exchange, Journal of Accounting and Strategic Finance (JASF), Vol 1 (1), 57-68. DOI: https://doi.org/10.33005/jasf.v1i01.26
Ramdani, (2016). Pengaruh Kebijakan Utang, Risiko Investasi, dan Ukuran Perusahaan terhadap Investment Opportunity Set, Institusional Repository Universitas Bakrie, http://repository.bakrie.ac.id/324/1/JURNAL%20argamaya%2002.pdf, akses 15 Januari 2018.
Smith, C.W.Jr., & Watts, R.L. (1992) The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies, Journal of Financing Economics, 32, 263-292.
Subchan, D., & Sudarman (2011) Pengaruh Kebijakan Utang, Kebijakan Dividen, Risiko Investasi dan Profitabilitas Perusahaan terhadap Set Kesempatan Investasi, Dharma Ekonomi, Vol. 18 (33), 1-21, http://ejurnal.stiedharmaputra-smg.ac.id/index.php/DE/article/view/177/152, akses 15 September 2018.
Wang, D.H.M. (2010) Corporate investment, financing, and dividend policies in the high-tech industry, Journal of Business Research, vol. 63, 486-489.
Yendrawati, R., & Adhianza, F.R., (2013). Faktor-faktor yang berpengaruh terhadap Set Kesempatan Investasi (IOS) pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia, Jurnal Inovasi dan Kewirausahaan, Vol. 2 (1), 32-41.
Published
2019-06-30
How to Cite
Sari, P., & Supratiwi, W. (2019). Factors Affecting Investment Opportunity Set: A Study of Company Advantages and Limitations. Sustainable Business Accounting and Management Review, 1(1), 1-8. https://doi.org/10.61656/sbamr.v1i1.23
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Copyright (c) 2019 Permata Sari, Wiwik Supratiwi
This work is licensed under a Creative Commons Attribution 4.0 International License.
