Detail Why Investment Under-perform in Post-Crisis Indonesia? (This Paper is Accepted on "The Japan Economic Policy Association (JEPA) 5th International Conference", 2-3 Desember 2006, Aoyama Gakuin University, Tokyo) Bibliografi Author: Prasetyantoko, A. Ico Tri Topik: maturity mismatch; firm investment; balance sheet effect; financial crisis Bahasa: (EN )     Penerbit: Aoyama Gakuin University     Tempat Terbit: Tokyo    Tahun Terbit: 2006     Jenis: Papers/Makalah - pada seminar internasional Fulltext: text - Paper 8 - JEPA.pdf (124.84KB; 1 download) Abstract In Indonesia, following a financial crisis started in the mid of 1997, firm-level investment performs poorly.Theoretically, depreciation could enhance export performance of the countries by delivering “competitiveness effect”, since price of goods from concerned countries should be cheaper. But due to the effects of maturity and currency mismatch, depreciation can decrease net worth of the firms through “balance sheet effect”. This paper focuses on the impact of currency depreciation on firm-level investment. We find that dollar debt is negatively and significantly related on investment, but it is not significantly related to earning and expected earning in which the signs are positive. It means that firms with more dollar debt invest less in both long-term and short-term investment. Unfortunately, this paper fails to provide empirical evidence on the impact of currency depreciation on firm-level investment, sales and earning. In Indonesia, due to financial crisis, investment level downgrade dramatically coinciding with the deterioration of the economic and business environment. It seems that the extreme currency depreciation followed by financial and economic crisis destroys structurally investment condition in Indonesia.Therefore, even though currency depreciation is not related significantly on firm-level investment, it is not true that the depreciation does not matter. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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