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Title:	Determinants of firm performance in Indonesia: the impact of global financial crisis
Authors:	Darmawati Muchtar (ZP00488)
Supervisor:	Fauzias Mat Nor, Prof. Dr.
Keywords:	Business enterprises -- Indonesia
Issue Date:	11-Sep-2017
Description:	The objectives of this study are two-prong: First, to investigate the extent of global financial crisis impact on firm performance and its determinants, and second, to investigate the determinants of firm performance. Extant literature of the financial crisis impact on firm performance and its determinants had offered competing explanations. Hence, this study is motivated by the issue of the inconsistencies and inconclusiveness of these findings. Moreover, the dynamic aspect of firm performance is relatively new in corporate finance literature. In particular, existing studies do not take into consideration three time-period analysis by sector in explaining the determinant factors of firm performance. Using a balanced panel data of 212 companies listed on Indonesia Stock Exchange from year 2003 to 2013, this study utilized two sets of linear regression analysis i.e. two-way cell means (ANOVA) and the dynamic panel Generalized Method of Moments (GMM) models. The findings of cell-mean parameters show that financial crisis had significant impact on accounting and market performance for both the manufacturing and service sectors. The findings also show that investment is lower during crisis period compared to before and after crisis period, while leverage is lower during crisis compared to before crisis period for both sectors. Interestingly, the results show that financial crisis had no impact on dividend per share, while free cash flow and corporate governance are less impacted by the financial crisis. Results of dynamic panel-GMM estimations show that previous year performance is significant; indicating that firm performance is dynamic in nature. Regardless of time-periods, only leverage, dividend per share and free cash flow are significant in influencing ROA for three time-periods. Similar results are found in the service sector; only dividend per share and free cash flow are influencing the ROA in the same manner, while leverage is significant during crisis period only. In comparing to market performance, financial decision factors are found to have mixed impact on TOBINS_Q for both sectors, whereas corporate governance has significant effect on market performance only. In sum, financial decision factors for both accounting and market performance seems to have similar impact in all the three periods, even though the amount of investment and leverage is lower during crisis period. In term of theoretical explanation, the impact of financial decision variables of financial firm performance for all the period is consistent with the theory. However, based on the coefficient of financial decision variables, the impact is more on the market performance and less on the accounting performance during financial crisis except for the free cash flow for both sectors. This is due to the decline in performance condition of the market during financial crisis, which makes financial decision making more sensitive. This study extends the current understanding of financial decision behavior, free cash flow and corporate governance by providing new empirical evidence of the impact of financial crisis on financial firm performance by sector.,Ph.D.
Pages:	271
Call Number:	HF1008.D337 2017 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Graduate School of Business / Pusat Pengajian Siswazah Perniagaan

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