Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

Cheryta, Aldea Mita; Moeljadi, Moeljadi; Indrawati, Nur Khusniyah

doi:10.26905/jkdp.v22i1.1334

Cited by 25 publications

(32 citation statements)

References 13 publications

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“…Thus the conclusion that can be taken is that information asymmetry has a not significant positive effect on cash holding. The results of this study are contrary to the research conducted by [3] who showed that information asymmetry has an influence and has a negative relationship to cash holding, research conducted by [13] information asymmetry has no influence towards cash holding and research conducted by [17].…”

Section: Discussioncontrasting

confidence: 99%

“…Information Asymmetry has a insignificant positive effect on Cash Holding, contrary to the research of [17] Who said this result is not in line with the signaling theory that the existence of information asymmetry will result in a decrease in investor confidence in the company that will make it difficult to collect and cash The holding will increase to finance the company's internal. However, the results of this study indicate the absence of the influence of information asymmetry on cash holding, which may be due to the fact that managers are concerned about shareholder welfare, which means increasing existing cash holding to be shared with shareholders.…”

Section: Discussioncontrasting

confidence: 66%

See 1 more Smart Citation

The Effect Of Dividend, Board Characteristics, Information Asymmetry Towards Cash Holding On Manufacturing Company

Bangun¹,

Yuniarwati²,

Saputra³

2019

Proceedings of the the First International Conference on Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Banda

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The purpose of this research is to analyze the dividend payment, board characteristics and information asymmetry to cash holding. The sample of this study was selected using purposive sampling that amounted 48 company in Indonesian Stock Exchange within the year 2015-2017. Data processing techniques using multiple regression analysis that helped by SPPSS program for windows the 24 th version and Microsoft Excel 2013. The results of this study indicate that dividend payment have a positive significant influence to cash holding, board characteristics (board size and independence) does not have an influence to cash holding and information asymmetryhave a positive non-significant influence to cash holding.

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Section: Discussioncontrasting

confidence: 99%

Section: Discussioncontrasting

confidence: 66%

The Effect Of Dividend, Board Characteristics, Information Asymmetry Towards Cash Holding On Manufacturing Company

Bangun¹,

Yuniarwati²,

Saputra³

2019

Proceedings of the the First International Conference on Islamic Development Studies 2019, ICIDS 2019, 10 September 2019, Banda

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“…This indicates that the use of debt can increase the firm value and reduce the agency conflict. The result of this research supported by Dewi & Wirasedana (2018) and Susanti & Restiana (2018) which found that the financing decisions positively affect the firm value, but contrary with Iturriaga & Crisostomo (2010) and Cheryta, Moeljadi, & Indrawati (2018) which found that leverage affects negatively on the firm value.…”

Section: Financing Decision and Firm Valuesupporting

confidence: 55%

Dividend and Agency Conflict in Indonesian Manufacturing Firms

Amrullah

Wijaya

2018

Jurnal Keuangan Dan Perbankan

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Firm's investment and financing decision had been empirically proven to have a certain influence on firm value, as changes in investment and financing policies will result in alterations of the firm risk profile. In the case of Indonesia, where the degree of investor protection was poor, and minority shareholders were at risk of expropriation of majority shareholders, increase in investment and debt addition was ill-favored and hence, result in a lower firm value. To mitigate the risk of expropriation, firms might chose to apply cash rights to its shareholders by distributing dividends. Using panel data with moderation on 86 Indonesian manufacturing firms, we found that dividend policy positively moderates the effect of the investment decision in firm value and negatively moderates the effect of financing decision on the value of the firm. Our finding act as empirical evidence that dividend policy was an effective tool to mitigate expropriation risk, albeit its used also sent a negative signal to the shareholder when a firm increases loans to paid out dividends.

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“…Similarly, in Taiwan, Kuan et al (2011) found that there were differences in the cash policy between the family-controlled and the non-family-controlled firms. In Indonesia, Cheryta, Moeljadi, & Indrawati (2018) state that cash holdings can trigger asymmetry information, and finally, it can cause agency conflict There were many studies conducted on the performance of the FFs and the NFFs. According to Singapurwoko (2013), the NFFs in Indonesia performed and sustained more rather than the FFs.…”

Section: Introductionmentioning

confidence: 99%

The differences between family firms and non-family firms: Evidence in Indonesia

Kristanti

Hendrawan

Alrasidi

2019

Jurnal Keuangan Dan Perbankan

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A family firm is a firm controlled by members of a family through their ownership in the management. This study aimed to observe the presence of differences in gender diversity, cash holding, and financial performance on Family Firms (FFs) and Non-Family Firms (NFFs). The purposive sampling conducted in this study produced 67 samples of companies listed on the Compass 100 Index. They mostly belong to the FF criteria. They also have gender diversity, non-conservative capital structure, medium-size, and low cash holding. The results of difference tests proved the presence of significant differences between the FFs and the NFFs on the variables of firm size, leverage, and gender diversity. Although ROE did not show significant differences, the FFs had higher ROE than the NFFs. Furthermore, the practical implication of this study is the need to consider the presence of women on the board and their share in the firms' decision making. Abstrak Perusahaan keluarga adalah perusahaan dimana sebuah keluarga mengendalikan perusahaan melalui kepemilikannya dalam manajemen. Penelitian ini bertujuan untuk melihat apakah ada perbedaan keragaman gender, kas perusahaan, dan kinerja keuangan pada perusahaan keluarga dan perusahaan bukan keluarga. Purposive sampling menghasilkan 67 sampel atas perusahaan Indeks kompas 100. Uji beda yang digunakan menunjukkan bukti bahwa ada perbedaan yang signifikan antara perusahaan keluarga dan perusahaan bukan keluarga untuk variabel ukuran perusahaan, rasio utang, dan keragaman gender. Walaupun ROE tidak menunjukkan perbedaan yang signifikan, namun perusahaan keluarga memiliki ROE yang lebih tinggi dibandingkan perusahaan bukan keluarga. Implikasi praktisnya adalah perlunya mempertimbangkan kehadiran wanita dalam dewan dan mempertimbangkan porsi mereka dalam pengambilan keputusan perusahaan.

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Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

Cited by 25 publications

References 13 publications

The Effect Of Dividend, Board Characteristics, Information Asymmetry Towards Cash Holding On Manufacturing Company

The Effect Of Dividend, Board Characteristics, Information Asymmetry Towards Cash Holding On Manufacturing Company

Dividend and Agency Conflict in Indonesian Manufacturing Firms

The differences between family firms and non-family firms: Evidence in Indonesia

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