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Financial factors as determinant in influencing corporate investment decision: empirical evidence from Indonesian manufacturing firms

Conducted research study aim in examine factors influencing corporate investment decision with
the existence of agency problem with asymmetry of information and managerial discretion in
global economic condition nowadays. Applying dynamic panel data model, Generalized Method
Model (GMM), research obtain result of relationship between financial factors toward corporate
investment decision in Indonesian public listed manufacturing firm industry with sample of 65
corporate firms with a 5year observation. Result findings shows that in highly competitive market,
the dependency toward internal generated fund will be significant, however, firm through qualified
management could further rely on other source of fund, external funding when they unable acquire
the capital expenditure as part of their corporate investment decision as one of their strategic
planning, with internal source of fund as they urged to remain competitive in preserve their position
in the market industry.
Keyword: Corporate Investment decision, capital expenditure, cash flow, operating cash flow,
profitability, market competition.

Creator(s)
  • (D12170020) ERICKA TANOYO
Contributor(s)
  • Josua Tarigan → Advisor 1
  • Saarce Elsye Hatane → Examination Committee 1
  • FOEDIJIAWATI → Examination Committee 2
Publisher
Universitas Kristen Petra; 2021
Language
English
Category
s1 – Undergraduate Thesis
Sub Category
Skripsi/Undergraduate Thesis
Source
Undergraduate Thesis No. 32011622/AKT/2021; Ericka Tanoyo (D12170020)
Subject(s)
  • CORPORATIONS--FINANCE
  • INVESTMENTS--DECISION MAKING
File(s)

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