The Mediating Effect of Asymmetric Information on the Funding Decision to Firm Value

DOI

10.2991/assehr.k.201021.022How to use a DOI?

Keywords

financial decision, asymmetric information, firm value

Abstract

There are several opinions about corporate funding decisions based on company value. Information asymmetry between company management and investors will affect the company’s performance and have an impact on the company’s value. The purpose of this study is to find out how much influence the funding decisions mediated by asymmetric information on increasing company value. After reviewing some literature that reveals that asymmetric information is a key factor influencing the relationship between funding decisions and firm value. Data were collected as many as 140 samples from 20 property and real estate companies listed on the Indonesia Stock Exchange. While the data collection period was 7 years from 2010 to 2016, data analysis was carried out using Amos. The results of this study found that the high or low value of a company depends on management in making policies according to the state of the company. The results of this study indicate that corporate funding policies play a less role in increasing firm value while information asymmetry has a role in increasing firm value. The results of this study contribute to potential investors and company management. Research contributions can be used as a reference for policy decisions made by managers, shareholders, and investors so as to minimize the risks that may occur and can increase firm value.

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  - Henny Dwijayani
AU  - Surachman
AU  - Sumiati
AU  - A. H. Djawahir
PY  - 2020
DA  - 2020/10/22
TI  - The Mediating Effect of Asymmetric Information on the Funding Decision to Firm Value
BT  - Proceedings of the Brawijaya International Conference on Multidisciplinary Sciences and Technology (BICMST 2020)
PB  - Atlantis Press
SP  - 88
EP  - 90
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201021.022
DO  - 10.2991/assehr.k.201021.022
ID  - Dwijayani2020
ER  -