scholarly journals Moderating Impact of Ownership Structure on Relationship of Equity Market Timing with Capital Structure on Companies Listed on Indonesia Stock Exchange

2018 ◽  
Vol 1 (2) ◽  
pp. 125
Author(s):  
Irni Yunita ◽  
Rina Indiastuti ◽  
Ria Ratna Ariawati ◽  
Erie Febrian
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Market Timing ◽  
Control Variable ◽  
Equity Market ◽  
Moderating Variables ◽  
Negative Effect ◽  
Using Data ◽  
And Control ◽  
Equity Market Timing

<pre>The purpose of this research is to determine the effect of market to book ratio on leverage change with ownership structure as moderating variable. The research sample is 41 companies in Indonesia Stock Exchange which conducted IPO in 2005 - 2010. The analysis period is five years after an IPO. The independent variable is market to book ratio, the dependent variable is leverage change and control variable is tangibility, profit and size. The moderating variables are managerial and institutional ownerships which included as ownership structure. This research is using data panel regression. The results show that companies in Indonesia pursued the equity market timing strategy because there is a positive effect of market to book ratio into equity issue and negative effect of market to book ratio into leverage change. The results also show that institutional ownership structure moderating the equity market timing. However, managerial ownership does not moderating the equity market timing.</pre>

Equity Market Timing dan Struktur Modal

2016 ◽  
Vol 9 (2) ◽  
Author(s):  
Nidya Fahima ◽  
Sri Maemunah Soeharto ◽  
Chorry Sulistyowati
Keyword(s):  
Capital Structure ◽  
Market Timing ◽  
Control Variable ◽  
Equity Market ◽  
Empirical Testing ◽  
Multiple Regressions ◽  
Dependent Variables ◽  
Negative Effect ◽  
Equity Market Timing

This study is an empirical testing of equity market timing and capital structure at firms which are doing IPO 2001 and 2002. The aims of this study are to test about the effect of equity market timing to capital structure and to test the persistency of the effect of equity market timing to firm’s capital structure in Indonesia. This study also used control variable, that asset tangibility, size and profitability. To analyze the data, this study used multiple regressions with SPSS 16.0 to test independent and dependent variables. The result suggest that the equity market timing has not significantly negative effect to the firms’ capital structure which used IPO 2001 and 2002 that are listed in BEI, and the effect of equity market timing to the firms’ capital structure are not persistent that the negative effect of equity market timing to the firms’ capital structure disappear within third years after IPO.

scholarly journals Equity Issue and a Long-Term Effect of Equity Market Timing on Capital Structure

2018 ◽  
Vol 7 (3.21) ◽  
pp. 82
Author(s):  
Miswanto Miswanto ◽  
. .
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Market Timing ◽  
Equity Market ◽  
Term Effect ◽  
Distributed Lag ◽  
Long Term Effect ◽  
Speed Adjustment ◽  
Equity Market Timing

After the research about a short term effect of equity market timing on capital structure, the author is motivated to do research about a long term effect of equity market timing on capital structure of the firms which is listed in Indonesia Stock Exchange. The main problems on this research are to understand whether firms use equity market timing theory when issuing equity, and whether equity market timing has a long term effect on its capital structure. Then the purpose of this study is to examine the problems of this research. There are two hypothesis in this research. First, firms use equity market timing when issuing equity, and second, equity market timing has a long term effect on capital structure of firms in Indonesia. This research uses non-financial companies listed on the Indonesia Stock Exchange over the period of 2001 to 2011 as the sample. The data used in this research are panel data. The sample choosing is based on sample non-probability sampling using purposive sampling in form of judgment sampling. The research model used in this study is a distributed-lag regression model. The results of this research show that firms use equity market timing when issuing equity, and equity market timing does not have a long term effect on capital structure of firms in Indonesia. Thus, because there is deviation on the capital structure, then there is an indication that the firms will perform the process of speed adjustment towards the targeted capital structure, the optimum capital structure. 

scholarly journals Analisis Equity Market Timing dan Struktur Modal

SKETSA BISNIS ◽  
2020 ◽  
Vol 7 (1) ◽  
pp. 45-55
Author(s):  
Acchedya Anugrahani ◽  
Rahmat Setiawan
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Market Timing ◽  
Weighted Average ◽  
Equity Market ◽  
Manufacturing Companies ◽  
Control Variables ◽  
External Finance ◽  
Equity Market Timing

Abstract This study aims to examine the effect of equity market timing in determining the company's capital structure decisions. The sample used was Indonesian manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2018 period. This study uses independent variables namely market to book ratio and External finance weighted average market to book ratio (EFWAMTB), the dependent variable used is market leverage, and the control variables used are profitability, tangibility, and size. This study uses panel data regression. The results of this study indicate that the MTB ratio and EFWAMTB have a significant negative effect on market leverage. So it can be said that Indonesian manufacturing companies apply the equity market timing theory in determining capital structure decisions. The profitability and firm size control variables give significant negative and the tangibility variable shows significant positive results on the company's market leverage. Keywords: equity market timing, market to book ratio, market to book ratio dan External finance weighted average market to book ratio (EFWAMTB), ROA, tangibility, size and market leverage. Abstrak Penelitian ini bertujuan untuk menguji pengaruh equity market timing dalam menentukan keputusan struktur modal perusahaan.Sampel yang digunakan adalah perusahaan manufaktur Indonesia yang terdaftar di Bursa Efek Indonesia (BEI) periode 2013-2018. Strudi ini menggunakan variabel independen yaitu market to book ratio dan external finance weighted average market to book ratio (EFWAMTB), variabel dependen yang digunakan yaitu market leverage dan variabel kontrol yang digunakan adalah profitabilitas, tangibilitas dan size. Studi ini menggunakan regresi data panel.Hasil penelitian ini menunjukan bahwa MTB dan EFWAMTB berpengaruh negatif signifikan terhadap market leverage.Sehingga dapat dikatakan perusahaan manufaktur Indonesia menerapkan teori equity market timing dalam menentukan keputusan struktur modalnya. Variabel kontrol profitabilitas dan firm size memberikan hasil negatif signifikan dan untuk variabel tangibilitas menunjukan hasil positif signifikan terhadap market leverage prusahaan. Kata Kunci: equity market timing, market to book ratio, market to book ratio dan External finance weighted average market to book ratio (EFWAMTB), ROA, tangibility, size and market leverage

scholarly journals Equity Market Timing: Testando através dos IPOs no Mercado Brasileiro

2010 ◽  
Vol 8 (1) ◽  
pp. 85
Author(s):  
José Luiz Rossi Jr. ◽  
Marcelo Marotta
Keyword(s):  
Full Article ◽  
Capital Structure ◽  
Market Timing ◽  
Equity Market ◽  
Previous Level ◽  
Using Data ◽  
The Impact ◽  
Equity Market Timing

This paper analyzes whether the behavior related to the equity market timing affected the recent IPO wave of Brazilian firms and exerted an impact on companies'capital structure. Using data from january 2004 to december 2007 the paper classifies the months in the sample in hot or cold according the number of IPOs that took place in each month. The paper confirms an oportunistic behavior by the firms that issue a higher volume of stocks in periods classified as hot. The paper also shows that the impact of this behavior on companies` capital structure is very limited. Although there is a reduction in companies` leverage right after the IPO, this returns to its previous level only a few quarters after the IPO. (Full article available in Portuguese only)

scholarly journals Equity Market Timing and Capital Structure: Evidence from Indonesia Stock Exchange

2018 ◽  
Vol 17 (1) ◽  
pp. 1-9
Author(s):  
Sasha Dhita ◽  
◽  
Noer Azam Achsani ◽  
Roy Sembel ◽  
Sugeng Purwanto
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Market Timing ◽  
Equity Market ◽  
Equity Market Timing

PENGARUH KEPEMILIKAN INSIDER DAN KEPEMILIKAN INSTITUSIONAL TERHADAP DIVIDEND PAYOUT RATIO DENGAN MEMPERGUNAKAN STRUKTUR MODAL SEBAGAI VARIABEL KONTROL PADA PERUSAHAAN YANG GO PUBLIC DI BURSA EFEK INDONESIA

2017 ◽  
pp. 47-61
Author(s):  
Sonti Paulina ◽  
Donalson Silalahi
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Control Variable ◽  
Multiple Linear Regression Analysis ◽  
Significant Negative Effect ◽  
Negative Effect ◽  
Equity Ratio

This study aimed to examine the effect of ownership structure on dividend policy on companies that go public in Indonesia Stock Exchange in 2012-2013 with a sample of 54 companies. Data were obtained from the Indonesian Capital Market Directory (ICMD) and the Indonesia Stock Exchange website. There are two equations developed in this study. The first equation to examine the effect of the company's ownership structure on dividend policy. While in the second equation entered the control variables, namely the debt-to-equity ratio to test the consistency of the company's ownership structure influence on dividend policy. Techniques using multiple linear regression analysis and hypothesis testing statistical t and F statistics. Hypothesis test results indicate that the stock insider ownership variable significant negative effect on the company's dividend policy, while the institutional ownership variables significant negative effect on dividend policy. Taken together the ownership structure share a significant effect on the company's dividend policy which go public in Indonesia Stock Exchange. Adjusted R2 values after admission control variable increased from 0,053 to 0,044 be inferred variable debt to equity ratio is a variable that helps to explain the variation in the dividend policy of the company went public in Indonesia Stock Exchange.

Short Sellers and Managerial Equity Market Timing

2019 ◽  
Author(s):  
Suchismita Mishra ◽  
Özde Öztekin ◽  
Anisur Rahman
Keyword(s):  
Market Timing ◽  
Equity Market ◽  
Short Sellers ◽  
Equity Market Timing

Ownership Structure and Dividend Policy in Listed Industrial and Consumer Goods Firms in Nigeria: Heckman’s Two-Stage Approach

2021 ◽  
Vol 3 (3) ◽  
pp. 288-308
Keyword(s):  
Ownership Structure ◽  
Consumer Goods ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Two Stage ◽  
Second Stage ◽  
Negative Effect ◽  
Block Holders

The decision on the magnitude of dividend has been identified to be highly related to the decisions to pay or not to pay dividends in formulating dividend policy. However, literature seems to be homogeneous and focused on examining the effect of ownership structure on dividend level or probability of paying dividends. Therefore, the paper examines the effect of ownership structure on dividend policy using Heckman’s two-stage technique. Utilizing 304 firm-year observations from industrial and consumer goods firms listed in the Nigerian Stock Exchange for the period within 2009-2019, the result shows that in the first stage, only foreign ownership has a negative significant effect on the probability of paying dividends. However, after accounting for a possible correlation between the probability of paying dividends and dividend pay-out, the result on the second stage exhibits a significant negative effect with block-holders and foreign ownerships on dividend policy while institutional ownership reveals a positive significant effect. The overall results show that the lower the foreign ownership the higher the possibility of paying dividends. Also, higher dividend pay-out is associated with the lower level of block-holders and foreign ownerships coupled with higher institutional ownership in listed industrial and consumer goods firms in Nigeria.

scholarly journals Equity Market Timing Approach in IPO and Rights Issue of Companies in Indonesia

2019 ◽  
Vol 20 (3) ◽  
Author(s):  
Wihandaru Sotya Pamungkas ◽  
Tulus Haryono ◽  
Djuminah Djuminah ◽  
Bandi Bandi ◽  
Doddy Setiawan
Keyword(s):  
Market Timing ◽  
Equity Market ◽  
Rights Issue ◽  
Equity Market Timing

Equity market timing and capital structure: evidence on post-IPO firms in Indonesia

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dewi Ratih
Keyword(s):  
Capital Structure ◽  
Market Timing ◽  
Equity Market ◽  
Content Type ◽  
Corporate Capital ◽  
Corporate Capital Structure ◽  
Short Run ◽  
Practical Implications ◽  
Equity Market Timing

Purpose The purpose of this paper is to analyze and evaluate the impacts of equity market timing on corporate capital structure policies in Indonesia by apply Baker and Wurgler’s analytical approach to firms in Indonesia to see, first, if that approach applies to Indonesian firms and, second, if it can be generalized to other emerging markets. Design/methodology/approach This study will focus on capital structure policies based on Market Timing Theory in developing countries, which uses the panel data of companies listed in Indonesian Stock Exchange after IPO. The companies used as research object are 70 firms in the non-financial/non-banking sector with the observation period of 2000–2015. The period of measurement is five years after IPO. Using a past market value in which equity market timing is measured in two-time measurements, i.e. yearly timing and long-term timing to prove its persistence. Findings Consistent with equity market timing theory, the results suggest that firms tend to issue equities when their market valuations are relatively higher than their book values and their past market values are high. As a consequence, the firms become underleveraged or have their debts reduced in the short run. The results of long-term measurement on equity market timing do not appear to affect the firms’ capital structure decisions due to the firms’ relatively quick adjustments of optimal capital structures. The conclusion is that equity market timing is an important element in the short run but not in the long run. Research limitations/implications The results of this study describe how firms in Indonesia take advantage of temporary market share fluctuations through equity market timing in their capital structure policies before ultimately making adjustments to the directions they are targeting. Practical implications The use of equity market timing is more aimed at reducing the debt ratio and avoiding unfavorable conditions in the debt market, as well as taking advantage of the capital gains derived from the differences in their stock prices. This study also has practical implications on investment policies that need to consider the adaptation factor of the industrial environment when it comes to making capital structure decisions, including how the entity must take policy when uncertain economic conditions. Social implications Through the research behavior of capital structure more in-depth decision is expected to provide an overview for investors widely in determining investment policy. Thus, the investment strategy is more planned and can also anticipate unexpected conditions. Originality/value This research is the first study to analyze and to evaluate the impacts of equity market timing on corporate capital structure policies on post-IPO firms in Indonesia. This research is an empirical study that investigates the relevance of equity market timing considerations in the determination of debt-equity choices in the capital structure, included in the conditions of the global financial crisis.

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