Searching Proxies of Investment Opportunity Sets and Identifying Information Content  

Oleh:

Kaaro, Hermeindito

Jenis: Article from Journal - ilmiah nasional - tidak terakreditasi DIKTI
Dalam koleksi: Jurnal Manajemen dan Kewirausahaan vol. 4 no. 1 (Mar. 2002), page 36 - 45.
Topik: investment opportunity set; realized growth; information content; investment opportunity set; pertumbuhan actual; isi informasi
Fulltext: MAN02040104.pdf (39.19KB)

Isi artikel

The concept of the investment opportunity set (IOS), which was first noted by Myers (1977), plays an important role in the capital market because it implies future growth, which is relevant in predicting the shareholder’s expected wealth. Unfortunately, IOS cannot be observed directly. Because IOS is an unobservable construct, the researcher must find appropriate proxies for IOS to capture Myers’ idea. A number of studies have been done to obtain appropriate proxies of IOS. One major finding is presented by Kallapur and Trombley (1999), that suggests appropriate proxies of IOS and attempting to identify whether the IOS of the firms are credible for representing the future (realized) growth. This paper attempts to review IOS literature, especially Kallapur and Trombley’s study. Some limitations of their study are noted here. This paper proposes a method to confirm the constructs of IOS and develops a new model in searching appropriate proxies for IOS. The present model also allows researchers not only to determine appropriate proxies for IOS but also to identify which proxies of IOS have good or bad information content.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali