Repository Universitas Pakuan

Detail Karya Ilmiah Dosen

Arief Tri HARDIYANTO, Noer Azam ACHSANI, Roy SEMBEL,Tb. Nur Ahmad MAULANA

Judul : Testing Trade-Off Theory of Capital Structure: Empirical Evidence from Indonesian Listed Companies

Abstrak :
ABSTRACT
The purpose of this research is to test the Trade-Off Theory of capital structure in public listed Indonesian
companies by using Partial Adjustment Model. The model is applied to a specific balance panel data from 228
companies by using different regression techniques; Pooled Least Square (PLS), Fixed Effect Model (FEM),
and Generalized Method of Moments (GMM). Findings of the research are Indonesian companies adjust their
capital structures towards an unobservable target at the speed of 43.79% a year. It means that Indonesian
companies need around 2 years and 3 months to adjust their existing capital structure toward a target. This
finding supports the advantages of Trade-Off Theory over the Pecking Order Theory. This paper also highlights
the long term parameter of dynamic model of capital structure and the determinants of capital structure.
Keywords: Dynamic Capital Structure, Target Capital Structure, Partial Adjustment Model, Trade-Off Theory,
Indonesia.
JEL Classification: G32: Corporate finance and governance; capital structure.

Tahun : 2014 Media Publikasi : Jurnal Internasional

Kategori : Jurnal No/Vol/Tahun : 06 / 03 / 2014

ISSN/ISBN : 2047 - 0401

PTN/S : Universitas Pakuan Program Studi : AKUNTANSI

Bibliography :
Ariff M, Hassan T. 2008. How capital structure adjusts dynamically during financial crises. Corporate Finance
Review. 13(3):11-24.
Bar-Or YD. 2000. An Investigation of Expected Financial Distress Costs [dissertation]. Pennsylvania (US):
University of Pennsylvania.
Clark B, Francais B, Hasan I. 2009. Do firms adjust toward target capital structures? Some international
evidence. http://ssrn.com/abstract=1364095

Elsas R, Florysiak D. 2013. Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent
Variables. JFQA. Forthcoming. Available in SSRN:http://ssrn.com/abstract=1632362 or
http://dx.doi.org/10.2139/ssrn.1632362.
Fischer, Heinkel, Zechner. 1989. Dynamic capital structure choice: theory and test. Journal of Finance.
44(1):19-40.
Flannery MJ, Rangan KP. 2006. Partial adjustment toward target capital structures. Journal of Financial
Economics. 79:469 -506.
Gujarati DN, Porter DC. 2009. Basic Econometrics. 5th ed. New York (US): Mc Graw-Hill.
Howe JS, Jain R. 2010. Testing the trade-off theory of capital structure. Review Business. 31 (1): 54-67.
Jiang F, Qu Y, Lu Z, Li Y. 2010. Product market competition and dynamic adjustment in capital structure. Front
Bus. Res. China. 4(1):101-129.
Khalid S. 2011. Financial reforms and dynamics of capital structure choice: a case of publically listed firms of
Pakistan. Journal of Management Research. 3(1).
Kouki M, Said HB. 2012. Capital structure determinants: new evidence from French panel data. IJBM.
7(1):214-229.
Maddala GS. 2005. Introduction to Econometrics. 3th Ed. West Sussex (UK). John Willey and Sons Ltd.
Manurung AH. 2011. Metode Penelitian: Keuangan, Investasi, dan Akuntansi Empiris. Jakarta (ID). PT Adler
Manurung Press.
Miguel AD, Pindado J. 2001. Determinant of capital structure: evidence from Spanish panel data. Journal of
Corporate Finance. 7:77-99.
Modigliani F, Miller MH. 1958. The cost of capital, corporate finance and the theory of investment. America
Economic Review. 48.
Molina CA. 2002. Two essays in empirical capital structure [dissertation]. Texas (US): The University of
Texas.
Mukherjee S, Mahakud J. 2010. Dynamic adjustment towards target capital structure. Journal of Advance
Management Research. 7(2):250-266.
Narongtanupon P. 2000. Three Essays on Commercial Banks and Financial Distress [dissertation], Indiana
(US): Indiana University.
Nguyen P, Shekhar C. 2007. The capital structure of Japanese firm: a partial adjustment analysis. SSRN Working
Paper Series.
[OECD] Organization Economic Cooperation and Development. 2012. Looking to 2060: Long-term global
growth prospects. Economic Policy Papers. (3).
Pungaliya RS. 2010. Three essays on earning management, financial irregularities, and capital structure
[dissertation]. Iowa (US): The University of Iowa.
Reinhard L, Li S.(2010. A note on capital structure target adjustment – Indonesia evidence. International
Journal of Management Financial. 6(3): 245- 259.
Tanimura JK. 2001. Taxes, Financial Distress, and Capital Structure in the United States and Japan
[dissertation]. Washington (US): Washington University.
Tian Z, Raul S. 2009. Testing the trade-off theory of capital structure: a Kalman filter approach. SSRN Working
Paper Series. http://dx.doi.org/10.2139/ssrn.1303209. 15 November 2013. 19.30.

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Detail Karya Ilmiah Dosen

Arief Tri HARDIYANTO, Noer Azam ACHSANI, Roy SEMBEL,Tb. Nur Ahmad MAULANA

Judul	:	Testing Trade-Off Theory of Capital Structure: Empirical Evidence from Indonesian Listed Companies
Abstrak	:	ABSTRACT The purpose of this research is to test the Trade-Off Theory of capital structure in public listed Indonesian companies by using Partial Adjustment Model. The model is applied to a specific balance panel data from 228 companies by using different regression techniques; Pooled Least Square (PLS), Fixed Effect Model (FEM), and Generalized Method of Moments (GMM). Findings of the research are Indonesian companies adjust their capital structures towards an unobservable target at the speed of 43.79% a year. It means that Indonesian companies need around 2 years and 3 months to adjust their existing capital structure toward a target. This finding supports the advantages of Trade-Off Theory over the Pecking Order Theory. This paper also highlights the long term parameter of dynamic model of capital structure and the determinants of capital structure. Keywords: Dynamic Capital Structure, Target Capital Structure, Partial Adjustment Model, Trade-Off Theory, Indonesia. JEL Classification: G32: Corporate finance and governance; capital structure.
Tahun	:	2014	Media Publikasi	:	Jurnal Internasional
Kategori	:	Jurnal	No/Vol/Tahun	:	06 / 03 / 2014
ISSN/ISBN	:	2047 - 0401
PTN/S	:	Universitas Pakuan	Program Studi	:	AKUNTANSI
Bibliography	:	Ariff M, Hassan T. 2008. How capital structure adjusts dynamically during financial crises. Corporate Finance Review. 13(3):11-24. Bar-Or YD. 2000. An Investigation of Expected Financial Distress Costs [dissertation]. Pennsylvania (US): University of Pennsylvania. Clark B, Francais B, Hasan I. 2009. Do firms adjust toward target capital structures? Some international evidence. http://ssrn.com/abstract=1364095 Elsas R, Florysiak D. 2013. Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent Variables. JFQA. Forthcoming. Available in SSRN:http://ssrn.com/abstract=1632362 or http://dx.doi.org/10.2139/ssrn.1632362. Fischer, Heinkel, Zechner. 1989. Dynamic capital structure choice: theory and test. Journal of Finance. 44(1):19-40. Flannery MJ, Rangan KP. 2006. Partial adjustment toward target capital structures. Journal of Financial Economics. 79:469 -506. Gujarati DN, Porter DC. 2009. Basic Econometrics. 5th ed. New York (US): Mc Graw-Hill. Howe JS, Jain R. 2010. Testing the trade-off theory of capital structure. Review Business. 31 (1): 54-67. Jiang F, Qu Y, Lu Z, Li Y. 2010. Product market competition and dynamic adjustment in capital structure. Front Bus. Res. China. 4(1):101-129. Khalid S. 2011. Financial reforms and dynamics of capital structure choice: a case of publically listed firms of Pakistan. Journal of Management Research. 3(1). Kouki M, Said HB. 2012. Capital structure determinants: new evidence from French panel data. IJBM. 7(1):214-229. Maddala GS. 2005. Introduction to Econometrics. 3th Ed. West Sussex (UK). John Willey and Sons Ltd. Manurung AH. 2011. Metode Penelitian: Keuangan, Investasi, dan Akuntansi Empiris. Jakarta (ID). PT Adler Manurung Press. Miguel AD, Pindado J. 2001. Determinant of capital structure: evidence from Spanish panel data. Journal of Corporate Finance. 7:77-99. Modigliani F, Miller MH. 1958. The cost of capital, corporate finance and the theory of investment. America Economic Review. 48. Molina CA. 2002. Two essays in empirical capital structure [dissertation]. Texas (US): The University of Texas. Mukherjee S, Mahakud J. 2010. Dynamic adjustment towards target capital structure. Journal of Advance Management Research. 7(2):250-266. Narongtanupon P. 2000. Three Essays on Commercial Banks and Financial Distress [dissertation], Indiana (US): Indiana University. Nguyen P, Shekhar C. 2007. The capital structure of Japanese firm: a partial adjustment analysis. SSRN Working Paper Series. [OECD] Organization Economic Cooperation and Development. 2012. Looking to 2060: Long-term global growth prospects. Economic Policy Papers. (3). Pungaliya RS. 2010. Three essays on earning management, financial irregularities, and capital structure [dissertation]. Iowa (US): The University of Iowa. Reinhard L, Li S.(2010. A note on capital structure target adjustment – Indonesia evidence. International Journal of Management Financial. 6(3): 245- 259. Tanimura JK. 2001. Taxes, Financial Distress, and Capital Structure in the United States and Japan [dissertation]. Washington (US): Washington University. Tian Z, Raul S. 2009. Testing the trade-off theory of capital structure: a Kalman filter approach. SSRN Working Paper Series. http://dx.doi.org/10.2139/ssrn.1303209. 15 November 2013. 19.30.
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