Detail Corporate Response to Currency Depreciation: Evidence from Indonesia (Presented in Spring Meeting of Young Economist, May 25-27th, Hamburg, and FMA European Meeting 2007, May 30th-June 1st, 2007, Barcelona, Spain) Bibliografi Author: Prasetyantoko, A. Ico Tri Topik: currency depreciation; firm performance; debt ratio Bahasa: (EN )     Penerbit: Universitat Hamburg     Tempat Terbit: Hamburg    Tahun Terbit: 2007     Jenis: Papers/Makalah - pada seminar internasional Fulltext: text - Paper 14 - SMYE.pdf (145.4KB; 1 download) Abstract This paper engages in firm-level corporate responses to the currency depreciation in Indonesia during the crisis started in the late of 1997. This paper intends to examine the impact of currency depreciation in two sides of corporate balance sheets, namely competitive effect and net worth effect of currency crisis. Furthermore, this paper is also concerned with the role of debt on the corporate performance when currency depreciation is present by raising a question of whether firms with higher debt equity ratio have lower performance due to currency depreciation. By employing 238 listed companies in Jakarta Stock Exchange (JSX) in the period 1994 – 2004 containing at least 5 consecutive years, this paper finds that following currency depreciation firms generally have lower level of sales and asset. The impact of debt ratio on market capitalization growth, total sales and total asset is significantly important in which firms with higher debt ratio have lower performance, in during and post-crisis period. This research also finds that debt, sales and firm size are significant variable to predict the likelihood of corporate distress. If size and debt increase the probability of a financial distress, sales impede the corporate distress. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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