Target and Leverage Adjustment Speed: Evidence on Manufacturing Companies in Indonesia

DOI

10.2991/aebmr.k.200606.076How to use a DOI?

Keywords

Target of Leverage, The adjustment speed, Indonesia Stock Exchange

Abstract

The aim of this research is to test the adjustment speed of the target and leverage the company. Company registered on the Indonesia Stock Exchange in that period from 2014 to 2018, is the object of this research, particularly in terms of testing the factors that affect the adjustment speed toward target leverage. This study used a sample of 66 companies manufacturing forming observation. This research uses a dynamic approach that takes into account the possibility of deviation between the actual leverage ratio with the targeted leverage ratio of the company. The results showed that the profitability variable has no significant effect on the adjustment speed, while the variable of company size, distance, and current liabilities to total liabilities ratio negatively and significantly affect the adjustment speed.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Siti Aisjah
AU  - Abrian Amir Rahman
PY  - 2020
DA  - 2020/06/09
TI  - Target and Leverage Adjustment Speed: Evidence on Manufacturing Companies in Indonesia
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 445
EP  - 451
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.076
DO  - 10.2991/aebmr.k.200606.076
ID  - Aisjah2020
ER  -