/jurnalpengurusan Tue, 31 Jan 2023 07:33:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/financing-decisions-is-the-quality-of-information-still-relevant-to-be-considered/?utm_source=rss&utm_medium=rss&utm_campaign=financing-decisions-is-the-quality-of-information-still-relevant-to-be-considered Tue, 31 Jan 2023 07:33:59 +0000 /jurnalpengurusan/?post_type=article&p=6672 Information asymmetry makes it difficult for company management to make decisions regarding funding sources. This study aims to investigate and explain the behaviour of company management when faced with asymmetric information problems. Data on 459 companies in Indonesia during the 2005–2019 period are surveyed in an attempt to provide the latest evidence regarding this issue. Investigations using the fixed-effect model approach and dynamic two-step system generalised method of moments are carried out using preliminary and robustness tests. The results show that in addition to company-specific factors, the problem of asymmetric information is an important factor considered by management in determining funding sources. The worsening information gap has led companies to increasingly use external funding from borrowing instead of adding additional funding sources from equity issuance (confirming the pecking order theory). Robust results in this study will be of use to regulators and enrich the literature related to corporate funding decisions in developing countries.

]]> /jurnalpengurusan/article/dynamic-adjustment-towards-target-capital-structure-thailand-evidence/?utm_source=rss&utm_medium=rss&utm_campaign=dynamic-adjustment-towards-target-capital-structure-thailand-evidence Sat, 08 Oct 2022 20:22:08 +0000 /jurnalpengurusan/?post_type=article&p=3762 By employing panel data, the present study examines the dynamic aspects of capital structure of 269 non-financial listed firms in Thailand from 2000 to 2009. This is a relatively new area in finance literature. The present study investigates the existence of target capital structure, speed of adjustment and factors affecting the speed of adjustment. The analyses are conducted using the dynamic Partial Adjustment Model (PAM) and estimated based on the Generalized Method of Moments. The results indicate the existence of target capital structure and firms undergone adjustment processes to be at their target capital structure from time to time with a considerably rapid speed of adjustment, consistent with the dynamic trade-off theory. Firms in Thailand are found to be under-adjusting, being below the required adjustment to be at the target within a year. Strong evidence exists that indicates that firm specific factors significantly influence speed of adjustment for firms in Thailand, such as distance from target, size of firm and profitability.

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