Analysis of Correlation Between Internal Financing and External Financing (Empirical Study on Manufacturing Companies Listed on Indonesia Stock Exchange during 2010–2015)

DOI

10.2991/apbec-18.2019.4How to use a DOI?

Keywords

Constrained firms; external funds; internal funds; pecking order theory; unconstrained firms

Abstract

The purpose of this study is to obtain empirical evidence about the negative relationship between internal and external funding for manufacturing businesses. The study uses multiple linear regression with panel data for manufacturing companies listed on the Indonesia Stock Exchange from 2010 to 2015. The study shows there is a negative relationship between internal and external funding for both constrained and unconstrained firms. The result of this study is consistent with “pecking order” theory.

Copyright

© 2019, 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  - Hanny Goenawan
AU  - Gede H. Wasistha
PY  - 2019/07
DA  - 2019/07
TI  - Analysis of Correlation Between Internal Financing and External Financing (Empirical Study on Manufacturing Companies Listed on Indonesia Stock Exchange during 2010–2015)
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 21
EP  - 28
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.4
DO  - 10.2991/apbec-18.2019.4
ID  - Goenawan2019/07
ER  -