No abstract

Managerial's psychology can affect financial decision in the company. This paper analyzes the influence of managerial optimism on the debt financing by using regression analysis. The dependent variable in this paper is debt financing. The independent variable is managerial optimism and the control variable are firm value, firm size, and firm performance that are occurred in the previous period. The samples used in this study are manufacturing companies that listed in Indonesian Stock Exchange during 2010-2014. The result on this study shows that managerial optimism, firm value, and firm size that are occurred in the previous period have positive significant effect on debt financing, whereas firm performance in the previous period has negative significant impact on debt financing.

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.

This study aims to examine the role of product market competition on Corporate Social Responsibility (CSR) by engaging altruism and utilitarianism views. Using dynamic Generalized Method of Moment panel regression for 524 Malaysian non-financial industry listed companies from 2010 to 2016, we find that firms in a more competitive environments increase their CSR activities. We interpret these results as evidence that CSR is strategically chosen by firms not for the societal benefits, but more on business as usual; a support for utilitarianism view, i.e profit maximizations. It explains the rationale that CSR activities are less employed in a more monopolistic or oligarchic industry. Practically, this study suggests that the CSR activities are forced by market competition. Firms in a more competitive market need CSR as their non-market strategies.

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.