TY - JOUR
T1 - The influence of uncertainties on leverage and investment decisions of non-financial firms in Indonesia
AU - Aldata, Muhammad Mizani Umaro
AU - Wijaya, Chandra
N1 - Funding Information:
We thank Universitas Indonesia for providing financial assistance through the PITMA-B Grant and the Research Cluster of Governance and Competitiveness, Faculty of Administrative Science, Universitas Indonesia for providing supporting materials in regard to discussions and assisting us in writing this manuscript.
Publisher Copyright:
© IAEME Publication Scopus Indexed
PY - 2020/5
Y1 - 2020/5
N2 - This study aims to analyse the effect of each uncertainty (firm-specific, market, capital asset pricing model (CAPM)-based, and economic policy uncertainty) on the leverage and investment decisions of non-financial companies in Indonesia. The variables used in this study are leverage, investment, firm-specific uncertainty, market uncertainty, CAPM-based uncertainty, economic policy uncertainty, sales growth, cash flow, Tobin's Q, and firm size. Researchers used panel data on 224 non-financial companies listed on the Indonesia Stock Exchange from 2009-2018 with variable-related data for at least three consecutive years. This research uses the least-squares research method. The results indicate that the four variables used in this study have a significant influence, in groups of variables, on leverage and investment decisions in each non-financial sector, particularly the manufacturing sector, and will remain constant if the four uncertainties are combined in the same situation.
AB - This study aims to analyse the effect of each uncertainty (firm-specific, market, capital asset pricing model (CAPM)-based, and economic policy uncertainty) on the leverage and investment decisions of non-financial companies in Indonesia. The variables used in this study are leverage, investment, firm-specific uncertainty, market uncertainty, CAPM-based uncertainty, economic policy uncertainty, sales growth, cash flow, Tobin's Q, and firm size. Researchers used panel data on 224 non-financial companies listed on the Indonesia Stock Exchange from 2009-2018 with variable-related data for at least three consecutive years. This research uses the least-squares research method. The results indicate that the four variables used in this study have a significant influence, in groups of variables, on leverage and investment decisions in each non-financial sector, particularly the manufacturing sector, and will remain constant if the four uncertainties are combined in the same situation.
KW - Investment
KW - Leverage
KW - Non-financial Firms
KW - Uncertainty
UR - http://www.scopus.com/inward/record.url?scp=85086096278&partnerID=8YFLogxK
U2 - 10.34218/IJM.11.5.2020.063
DO - 10.34218/IJM.11.5.2020.063
M3 - Article
AN - SCOPUS:85086096278
SN - 0976-6502
VL - 11
SP - 702
EP - 717
JO - International Journal of Management
JF - International Journal of Management
IS - 5
ER -