Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)

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Study About Targeted Leverage Determinant Behavior and Speed of Adjustment in Secondary and Tertiary Sectors in Indonesia Stock Exchange

Authors
Purwanto Widodo
Corresponding Author
Purwanto Widodo
Available Online 15 September 2020.
DOI
10.2991/aebmr.k.200915.043How to use a DOI?
Keywords
capital structure, determinant, the speed of adjustment
Abstract

This research aims to look at the behavior of capital structure determinants derived from corporate and macroeconomic characteristics and determinants of speed of adjustment based on company characteristics in the secondary and tertiary sectors. The research methodology uses dynamic panel data and is analyzed using the GMM (General Method of Moment) approach to obtain consistent and non-bias estimators. The results of the analysis showed that the company’s characteristics variables: profitability, size, growth opportunity, tangibility, and business risk; Macroeconomic variables: economic growth, interest rates, and inflation have a significant effect on leverage. Based on the speed of adjustment (SOA) secondary and primary sectors, follow the Dynamic Trade-Off Theory. The effect of determinants of speed adjustment between secondary sectors is not the same as tertiary sectors. The research findings are profitability variable, the secondary sector consistently applies the Pecking Order Theory, whereas the tertiary sector is only in the short term. There is an effect of size (size effect) and growth opportunity (growth opportunity effect) both in the secondary sector and the tertiary sector.

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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Volume Title
Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
15 September 2020
ISBN
10.2991/aebmr.k.200915.043
ISSN
2352-5428
DOI
10.2991/aebmr.k.200915.043How to use a DOI?
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/).

Cite this article

risenwbib
TY  - CONF
AU  - Purwanto Widodo
PY  - 2020
DA  - 2020/09/15
TI  - Study About Targeted Leverage Determinant Behavior and Speed of Adjustment in Secondary and Tertiary Sectors in Indonesia Stock Exchange
BT  - Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)
PB  - Atlantis Press
SP  - 183
EP  - 187
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200915.043
DO  - 10.2991/aebmr.k.200915.043
ID  - Widodo2020
ER  -