The Effect of Micro and Macroeconomic on Investment Opportunity
Evidences in ASEAN Countries
Abstract
The purpose of this study is to obtain results: the influence of micro and macroeconomic factors of the company on investment opportunities. This research is conducted in five ASEAN countries, such as; Indonesia, Malaysia, Singapore, Thailand, and the Philippines (ASEAN-5). The microeconomic factors are measured by firm size, financial risk, profitability, and debt policy. The macroeconomic factors are measured by interest rates, exchange rates, inflation, and economic growth. The analysis unit of this study is 175 large capacity manufacturing industries listed on ASEAN-5 stock exchanges for the 2012-2017 period. The data analysis technique used is panel data regression analysis. The result shows that the Debt Equity Ratio has a negative and significant effect on investment opportunities in Microeconomic influence for the ASEAN-5 Countries. Risk does not have a significant effect on investment opportunities. Profitability is insignificant for the ASEAN-5 Countries and is significant for the State of Singapore, Thailand. Firm Size is significant for Indonesia, Malaysia, Singapore, and the Philippines. GDP growth has a significant effect on investment opportunities for the ASEAN-5 countries. The interest rate has harmed the opportunities of investment in Indonesia, Malaysia, and Singapore. Inflation has a negative and significant effect in Indonesia, Malaysia, Thailand, and the Philippines. Exchange rates are significant for Indonesia, Malaysia, and Singapore. Investment opportunities have a positive effect on the value of the company in ASEAN-5 Countries. The benefits of this study for creditors are as a guideline for disbursing credit, and for investors it is as a guideline for placing capital investments in companies that have favorable debt and equity considerations in five (5) ASEAN Countries.
References
Ahmed Rivai and Belkaoui, (2002). “Profitability Multinationality and the Invesment Opportunity Set”, Journal Avances in International Accounting, vol 15 pp 1-12
Albrecht, W. D., & Richardson, F. M. (1990), “Income Smoothing by Economy Sector”. Journal of Business Finance & Accounting, pp. 17(5): pp.713-730.
Allen et al ,2004, “Financial Systems in Europe, The USA, And Asia, Oxpord Review Of Econmic Policy”, VOL. 20, NO. 4
Akintunde Temitope S.and Satope Bola F. (2006), “Effect of Health Invesment on Economic Growth In Nigeria”, Journal of Economic and Finance Vol 1 (2) pp 39-47
Anne Muthauro (2012), “The Relationship Between Interest Rates and Real Estate Invesment in Kenya”, Journal of Economics and Finance, Vol. 26, No. 2, hlm. 182-200
Armstrong, R.Vashishtha (2012), “Executive Stock Option, Differential Risk-taking Incentives and Firm Value”, Journal of Financial Economic 104(2012)70-88
Arum Pranandari (2015), “Pengaruh Perputaran Kas, Perputaran Persedaan, Rasio Cepat, dan Perputaran Piutang Terhadap Return On Asset (ROA) (Studi Empiris pada Perusahaan Industri Dasar dan Kimia yang Terdaftar di BEI”, Jurnal riset Akuntansi (120462201212), Vol.5 no.2 September 2015:103‐118
Audrey Liwan and Evan Lau (2007), “Managing Growth: The Role of Export, Inflation and Investment in three ASEAN Neighboring Countries”, MPRA Paper No. 3952, posted 10. July 2007
Auliyah Robiatul dan Hamzah Ardi (2006), “Analisis Karakteristik Perusahaan, Industri dan Ekonomi Makro Terhadap Return dan Beta Saham Syariah Di Bursa Efek Indonesia”, Jurnal SNA IX Padang
Aurangze (2012), “Imfact of Invesment Activities of Economic Growth of Pakistan”, Journal Business and Management Vol 2(1) pp.92-100
Baskin J, (1983), “An Emperical An Investigation of the Packing Order Hyphotesya”, Financial Management Spring, 26-35
Baye, M. R, (2006). Managerial Economics and Business Strategy, 5th edition. The Mc Graw-Hill Companies, Inc.
Bringham, Eugene F. and Gapenski Louise C.,2006, Intermediate Financial Management,5th Edition, The Dryden Press, NewYork
Chris O Udoka (2012), “The Effect of Interest Rate Fluctuation on the Economic Growth of Negeria, Department of Bank and Finance”. Faculty and Finance of Management Science University of Calabar, Vol 3, No 20
Claude L. Graeff (2002), “Evolotion Of Situational Leadership Theory: Acritical Review”, Leadership Quarterly, 8(2),153-170.C.S.
Djayani, Nurdin. (2009). “Resiko Investasi pada Saham Properti di Bursa Efek Indonesia”, (Investment Risks on Property Stocks on the Indonesia Stock Exchange), Usahawan Journal, No. 3, Th XXVIII.
Engelbert J. Dockner (2013), “Invesment Firm Value and Risk For a System Operator Balancing Energy Grids”, Journal Energy Economic 37(2013)182-192
Evica Petrovic, Jelena Starkovic (2009), “Country Risk and effects of Foreign Direct Invesment”, Journal Economics and Organization Vol.6,No.1
Fraser, E.D.G., Dougill, A.J., Mabee, W., Reed, M.S., McAlpine, P. (2006), “Bottom up and top down: analysis of participatory processes for sustainability indicator identification as a pathway to community empowerment and sustainable environmental management”. Journal of Environmental Management 78, 114 –127
Gull and Jaggi B (2009), “An Analysist of Joint Effecs Of Investment Opportunity Set,Free Cash Flow And Size on Corporate Debt Policy”. Review Of Quantitative and Accounting 12, Hal 371 . 373
Hardiningsih,Pancawati.,Suryanto.,Chariri, A,2001, “Pengaruh Faktor Fundamental dan Risiko Ekonomi terhadap Retur Saham pada Perusahaan di Bursa Efek Jakarta: Studi Kasus Basic Industry &, Jurnal Strategi”, Bisnis,Vol,8, Des.Tahun VI.
Herwono Indra Saputra dan Njo Anastasia (2013), “Jenis Investasi Berdasarkan Profil Risiko, (Jenis Investasi Berdasarkan Profil Risiko)”, Jurnal FINESTA Vol. 1, No. 2, (2013) 47-52
Haryanto, M.Y Dedi, Riyatno (2007). “Pengaruh Suku Bunga, Sertifikat Bank Indonesia, dan Nilai Tukar terhadap Resiko Sistemis Saham Perusahaan di BEJ”, Jurnal Keuangan dan Bisnis . Vol. 5, No.1, 24‐40.
I Gede, Adiputra, (2016), “The Efect of Internal and External Factors on The Value of The Firm Through its Invesment Opportunities on the Stock Exchange of the Southeast Asian Countries”, International Business Management 10 940; 370-376
Kieso and Weygandt. 2011. Intermediate Accounting edisi tahun 2011. Jakarta: Erlangga.
Larry Lang, Eli Ofek dan Rene M. Stulz; (2006), “Laverage, Invesment and Firm Growth”, Journal Of Financial Economic, 40 (2006) 3-29
Lee Heeseok, Byounggu Choi, (2002). “Knowledge management strategy and its link to knowledge creation process”, Expert Systems with Applications 23 (2002) 173–185
Machfoedz, Mahmud, 2006, Kewirausahaan, Metode, Manajemen dan Implementasi, BPFE. Yogjakarta.
Mankiw N.Gregory, 2003, Macroeconomics, SEVENTH EDITION, Worth Publishers, 41 Madison Avenue, New York, NY 10010
Mariyam, 2009, “Determinan Struktur Modal Mempengaruhi Keuntungan Saham di Bursa Efek Jakarta : Analisis Periode Sebelum dan Selama Krisis”, Jurnal Manajemen Indonesia, Vol, 4, No, 6
Masturah Ma’in and Abdul Ghafar Ismail, (2010), “Impact of the Debt Ratio on Firm Investment: Evidence from Malaysian listed firms”, International Conference on E-business, Management and Economics, IPEDR vol.3 (2011) © (2011) IACSIT Press, Hong Kong
Mishkin, Frederic S. 2008. Ekonomi Uang, Perbankan, dan Pasar Keuangan. Jakarta: Salemba Empat
Moh'd, M.A., Perry, L.G., and Rimbey, J.M., (2005), “An Investigation of Dynamic Relation Beetwen Theory and Dividend”, The Financial Review, Vo1.30, No.2 May.
Myers, Stewart C. (1977). Determinant of Corporate Borrowing, Journal of Financial Economics 5. pp.147-175.
Nkurikiye Boscoa (2016), “Effect of GDP, Interest Rate and Inflation on Private Invesment in Rwanda”, International Academic Journal of Economic, Vol 3, No 1, pp1-17
Onyemaechi Joseph Onwe (2014). “Motives and Motivation for Implementation of Public Private Partnerships (PPPs) in Housing Provision in Nigeria”, Mediterraneaen Journal of Social Sciences MCSER Publishing, Rome-Italy, 7(2):149
Patrick, Adigwe dan Emphraim, Okoro (2016) “Human Communication and Effective Interpersonal Relationship : An Analysis of Client Counseling and Emotional Stability”., Journal of Economics & Management Sciences Vol.5 Issued
Peasnell, Pope,danYoung (2008) Corporate Governance in Less Developed and Emerging Economies, Emerald Group Publishing
Phonesavanh Xaypanya, Poomthan Rangkakulnuwat and Sasiwimon Warunsiri, (2015), "The determinants of foreign direct investment in ASEAN", International Journal of Social Economics, Vol. 42 Iss 3 pp. 239 – 250
Praphan Wongbangpo, and Subhash C, Sharma, (2002), “Stock Market and Macroeconomic Fundamental Dinamyc Interavtion, Asean-5 Countries”, Journal Of Asean Economic, 13 (2002), 25-
Saputro, Adi, akhmad, Hindasah, Lela (2007), “Analisis Pengaruh Kebijakan pendanaan, Deviden, dan Profitabilitas, terhadap Set Kesempatan Investasi”, Jurnal Akuntansi dan Investasi, Vol 8, No1, hal 52-62
Sasi Iansiraroj, (2016). “The Foreign Direct Invesment Economic Growth Nexus”, Journal International Review of Economic and Finance Vol 42 (2016) pp 116-133
Smith Jr, Clifford W. dan RossL.Watts. (2002), “The Invesment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies”, Journal of Financial Economics 32:263-292
Subramanyam, KR dan John, J. Wild, 2010. Analisis Laporan Keuangan, Buku Satu, Edisi Sepuluh, Salemba Empat, Jakarta.
Sugiyarso, G dan Winarni, F. 2005. Manajemen Keuangan. Penerbit Media Presindo. Yogyakarta Sunariyah. 2013. Pengantar Pengetahuan Pasar Modal. Yogyakarta: UPP-STIM YKPN
Sukirni, Dwi. (2012), “Kepemilikan Manajerial, Kepemilikan Institusional, Kebijakan Dividen dan Kebijakan Hutang Analisis terhadap Nilai Perusahaan”, Accounting Analysis Journal 1 (2): 1-12.
Sulaiman D. Muhammad, Ghulam Rasool Lakhan, Saba Zafar Muhammad Noman, (2013), “Rate of Interest and Its Impact on Invesment to the Extend of Pakistan”, Pakistan Journal of Commerce and Social Science, Vol 7 (1), 99-99
Taichi Makia, Koichi Yotsuyab and Tadashi Yakib (2005), “Economic Grwoth and the Riskiness of Invesment in Firm Specifics Skill”, Journal European Economic Review 49(2005)1033-1049
Tandelilin, E., dan Wilberforce. T. (2002), “Can Debt and Dividend Policies Substitute Insider Ownership in Controlling Equity Agency Conflict?”, Gadjah Mada International Journal of Business, January, Vol. 1, No. 1: pp. 31–43.
Please find the rights and licenses in AMAR (Andalas Management Review). By submitting the article/manuscript of the article, the author(s) agree with this policy. No specific document sign-off is required.
1. License
The non-commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
2. Author(s)' Warranties
The author warrants that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
AMAR is to disseminate/published articles are as free as possible. Under the Creative Commons license, AMAR permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and AMAR on distributing works in the journal and other media of publications.
4. Rights of Authors
Authors retain all their rights to the published works, such as (but not limited to) the following rights;
- Copyright and other proprietary rights relating to the article, such as patent rights,
- The right to use the substance of the article in own future works, including lectures and books,
- The right to reproduce the article for own purposes,
- The right to self-archive the article,
- The right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal (Andalas Management Review).
5. Co-Authorship
If the article was jointly prepared by more than one author, any authors submitting the manuscript warrants that he/she has been authorized by all co-authors to be agreed on this copyright and license notice (agreement) on their behalf, and agrees to inform his/her co-authors of the terms of this policy. AMAR will not be held liable for anything that may arise due to the author(s) internal dispute. AMAR will only communicate with the corresponding author.
6. Royalties
Being an open accessed journal and disseminating articles for free under the Creative Commons license term mentioned, author(s) aware that AMAR entitles the author(s) to no royalties or other fees.
