The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia

Cahyono, Heru Kristanto Hendro; Hanafi, Mamduh M.; Setiyono, Bowo

doi:10.26905/jkdp.v23i2.2604

Cited by 2 publications

(2 citation statements)

References 21 publications

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“…Research conducted by Hendrawan & Nugraha (2015) entitled "Test of Speed of Adjustment Towards the Capital Structure in Indonesia Telecommunication Industry" has the aim of testing whether the pecking order theory occurs in the telecommunications industry in Indonesia and also in the speed of its adjustment. The findings from this study indicate that the pecking order theory is not applied in the telecommunications industry in Indonesia and it is very different from the findings of Huang & Ritter (2011) that public companies traded in the US are adjusted to their target leverage at medium speeds with a period of 3.9 years.…”

Section: Introductionmentioning

confidence: 99%

Adjustment Speed of the Capital Structure in the Telecommunication Industry in Indonesia Year 2013-2018

Putra,

Hendrawan

2023

JOSR

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In 2013, telecommunications companies in Indonesia relied significantly on debt loans as a source of funding, with an average capital structure of -11.51%. The highest increase was observed in 2015, reaching an impressive 99.20%. Given this fluctuation, it becomes imperative to conduct research focusing on the adjustment speed of the capital structure in telecommunications companies during the period from 2013 to 2018. The research findings indicate varying rates of adjustment in capital structure, particularly in terms of Debt Equity Ratio (DER). The fastest adjustment was seen in XL Axiata at -19.14% and Indosat at -1.62%, while Telkom Indonesia exhibited a slower adjustment rate at 36.72%, and Smartfren Telecom had the slowest adjustment at 51.96%. Similarly, when considering the Debt Asset Ratio (DAR), XL Axiata displayed the swiftest adjustment at -17.63%, followed by Telkom Indonesia at -9.05%, and Indosat at -3.11%. In contrast, Smartfren Telecom had the most gradual adjustment, with a notable value of 71.70%. These findings underscore the dynamic nature of capital structure in the Indonesian telecommunications sector during the specified period. The varying speeds of adjustment in debt ratios reflect the strategic financial decisions made by these companies in response to market conditions and internal factors. Further analysis is essential to comprehend the factors influencing these diverse adjustment rates and their implications for the industry's financial stability.

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Section: Introductionmentioning

confidence: 99%

Adjustment Speed of the Capital Structure in the Telecommunication Industry in Indonesia Year 2013-2018

Putra,

Hendrawan

2023

JOSR

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“…Fifth, based on the f test, it is known there was no influence of working capital, asset structure, liquidity, and solvency towards rentability simultaneously. (Hendrawan & Nugraha, 2015) conducted a study entitled "Test of Speed of Adjustment towards the Capital Structure in Indonesia Telecommunication Industry". It examined whether the Pecking Order Theory occurs in the telecommunications industry in Indonesia and also in the speed of capital structure adjustment.…”

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Speed Of Adjusment Of Capital Structure Of Cement Companies In Indonesia

Wibowo,

Hendrawan

2023

ARL

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Pertumbuhan konsumsi semen domestik di Indonesia mengalami tren peningkatan pada tahun 2010-2017 dengan pertumbuhan tertinggi sebesar 17,7% di tahun 2011 dan 7,6% di tahun 2017. Total Pendapatan dan Laba Bersih (NI) pada empat perusahaan semen di Indonesia yaitu Semen Indonesia, Ltd, Indocement Tunggal Prakarsa, Ltd, Holcim Indonesia, Ltd dan Semen Baturaja, Ltd pada tahun 2013-2018 menghasilkan tren Laju Pertumbuhan Majemuk Tahunan (Compound Annual Growth Rate/CAGR) sebesar + 1,0% dan -18,4%. Oleh karena itu, penelitian yang berfokus pada Speed of Adjustment (SOA) struktur modal perusahaan semen pada tahun 2013-2018 sangat penting untuk dilakukan. Hasil penelitian menunjukkan bahwa SOA pada Debt Equity Ratio (DER) adalah sebagai berikut: yang tercepat adalah Semen Indonesia, Ltd (-916,99%) dan Indocement Tunggal Prakarsa (-210,45%), sedangkan yang terendah adalah Holcim Indonesia, Ltd (9987,90%) dan Semen Baturaja (955,03%). Selain itu, SOA yang mengalami penurunan Debt Asset Ratio (DAR) tercepat berturut-turut adalah Semen Baturaja (-2307%), Semen Indonesia (-831%), Indocement Tunggal Prakarsa (-320%), dan yang terendah adalah Holcim Indonesia (8.787%).

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The optimal cash holdings speed of adjustment and firm value: An empirical study in Indonesia

Abstract: This is an open access article under the CC-BY-SA license

Cited by 2 publications

References 21 publications

Adjustment Speed of the Capital Structure in the Telecommunication Industry in Indonesia Year 2013-2018

Adjustment Speed of the Capital Structure in the Telecommunication Industry in Indonesia Year 2013-2018

Speed Of Adjusment Of Capital Structure Of Cement Companies In Indonesia

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