Detail Capital Structure's Dynamic Response to Exogenous Variables; A Case of Listed Manufacturing Firms in Indonesia (article of International Journal of Financial Research Vol.3, No.2 April 2012) Bibliografi Author: Saadah, Siti ; Prijadi, Ruslan Topik: Dynamic Capital Structure; Optimal Leverage; Speed of Adjustment. Bahasa: (EN )     Penerbit: sciedu Press     Tempat Terbit: Markham, Ontario    Tahun Terbit: 2012     Jenis: Article - diterbitkan di jurnal ilmiah internasional Fulltext: IJFR v3n2 Siti Saadah - text optim.pdf (2.33MB; 13 download) Abstract Research on capital structure has been shifting from static to dynamic approaches. This shift is denoted by efforts to verify the presence of optimal leverage and how a firm would adjust to changes in variables that affect the leverage. This research derives an Error Correction Model from a quadratic cost function to investigate the presence of optimal leverage and how a firm adjusts its capital structure toward the optimal one. This research reveals the existence of the dynamic adjustment process. The negative signs of error correction terms confirm that the firm would have a reversal response to its current leverage position. If it is below the optimal level, the firm would adjust upward; and vice versa. The speed of adjustment are different across industry. This research confirms the importance of the trade-off and market timing theories in explaining the dynamics of capital structure of manufacturing firms in Indonesia. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

Copyright © 2006, 2007 Unika Atma Jaya, all rights reserved