Target and Leverage Adjustment Speed: Evidence on Manufacturing Companies in Indonesia
- DOI
- 10.2991/aebmr.k.200606.076How to use a DOI?
- Keywords
- Target of Leverage, The adjustment speed, Indonesia Stock Exchange
- Abstract
The aim of this research is to test the adjustment speed of the target and leverage the company. Company registered on the Indonesia Stock Exchange in that period from 2014 to 2018, is the object of this research, particularly in terms of testing the factors that affect the adjustment speed toward target leverage. This study used a sample of 66 companies manufacturing forming observation. This research uses a dynamic approach that takes into account the possibility of deviation between the actual leverage ratio with the targeted leverage ratio of the company. The results showed that the profitability variable has no significant effect on the adjustment speed, while the variable of company size, distance, and current liabilities to total liabilities ratio negatively and significantly affect the adjustment speed.
- 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
TY - CONF AU - Siti Aisjah AU - Abrian Amir Rahman PY - 2020 DA - 2020/06/09 TI - Target and Leverage Adjustment Speed: Evidence on Manufacturing Companies in Indonesia BT - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019) PB - Atlantis Press SP - 445 EP - 451 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200606.076 DO - 10.2991/aebmr.k.200606.076 ID - Aisjah2020 ER -