Efektivitas Investasi dan Pembiayaan Internal: Fenomena Manajer Terlalu Percaya Diri di Pasar Modal Indonesia

Deni Ramdani, Heni Herawati

Abstract


Overconfident managers create biases that make them overvalue their company and its investments. This study takes a sample of companies that are listed in the Indonesia Stock Exchange, for the years 2013-2017. Companies that are listed on the LQ 45 index have high liquidity so that the stock is active so it doesn't interfere with the accuracy of the research being carried out. The results showed that internal funding has a significant posi-tive relationship with company investment. This shows that the more internal financing, the greater the scale of the investment the company will make. Internal financing and overinvestment have a significant positive correlation. So that companies tend to over-invest. Internal finance has a dual role to play in investment. One side of the bias to im-prove investment efficiency by increasing the scale of investment and reducing the scale of investment, on the other hand it can cause excessive investment.

DOI: https://doi.org/10.26905/afr.v3i2.3834


Keywords


investasi, pembiayaan, keuangan perilaku

Full Text:

PDF

References


Barros, L. A. B. and Silveira, A. D. M. (2007). Overconfidence, Managerial Optimism and the Determinants of Capital Structure, SSRN Electronic Journal doi: 10.2139/ssrn.95327

Bates, T. W. (2005). Asset Sales, Investment Opportunities, and the Use of Proceeds. Journal of Finance. 60(1), pp. 105-135.

Campbell, T. (2014). CEO optimism and the board's choice of successor. J. Corp. Financ. 29, 495–510.

Deshmukh, S., Goel, A.M., Howe, K.M. (2013). CEO overconfidence and dividend policy. J. Financ. Intermed. 22 (3), 440–463.

Frank, M. Z., and Goyal, V. K. (2003). Testing the pecking order theory of capital structure, Journal of Financial Economics 67(2). pp. 217-248

Gervais, S., Heaton, H., Odean, T. (2011). Overconfidence, compensation contracts, and capital budgeting. J. Financ. 66, 1725–1777

Graham, J.R., Harvey, C.R. (2001). The theory and practice of corporate finance: evidence from the field. Nankai Bus. Rev. 60 (2–3), 187–243.

Hartono, J. M. (2001). Teori Portofolio dan Analisis Investasi Edisi 3. Jogyakarta: BPFE Jogyakarta.

Hartono, J.M. (2005). Pasar Efisien Secara Keputusan. Jakarta: PT Gramedia Pustaka Utama.

Heaton, J. B., (2002). Managerial optimism and corporate finance. Financial Management 31(2), pp. 33-45.

Huang, R., Tan, K., Faff, R. (2016). CEO overconfidence and corporate debt maturity. J. Corp. Financ. 36, 93–110

Jiang, F.X., Yin, Z.H., Su, F., Huang, L. (2009). Managerial background traits and corporate over-investment. Manage. World (1), 130–139

Li, W.L., Xie, G. L., and Hao, J.Y. (2014). The empirical study on the influence of managerial overconfidence on overinvest behavior, Journal of Shanxi Finance and Economics University (10), pp. 76-86.

Malmendier, U., Tate, G., and Yan, J. (2011). Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies. Journal of Finance 66(5). pp.1687 - 1733.

Myers, S. C. (1984). The Capital Structure Puzzle, Journal of Finance. 39(3), pp. 575–592.

Renneboog, L., Simons, T., Wright, M. (2007). Why do public firms go private in the UK? The impact of private equity investors, incentive realignment, and undervaluation. J. Corp. Finance. 13 (4), 591–628.

Richardson, S. (2006). Over-investment of free cash flow, Review of Accounting Study 11, pp. 159-189

Roll, R. (1986). The Hubris Hypothesis of Corporate Takeovers. Journal of Business. 59(59), pp. 197-216.

Shefrin, H. (2001). Behavioral Corporate Finance. Journal of Applied Corporate Finance. 14(3), pp. 113-124.

Xin, Q.Q., Lin, B., and Wang, Y.C. (2007) Government Control, Executive Compensation, and Capital Investment. Economic Research Journal (8), pp. 110-12

Yu, M.G., Xia, X.P., and Zou, Z.S. (2006). The Relationship between Managers' Overconfidence and Enterprises' Radical Behavior in Incurring Debts. Management World (8), pp. 104-11

Zhang, M., Wang C.F., and Jiang F.X. (2010). Is the Allocation of Credit Resources in China Efficient? Empirical Evidence from the view of Chinese Listed Companies Investment Efficiency. South China Journal of Economics. 28(7), pp. 61-71.




DOI: https://doi.org/10.26905/afr.v3i2.3834

Refbacks

  • There are currently no refbacks.






AFRE (Accounting and Financial Review)
Postgraduate University of Merdeka Malang



width="145"indexwidth="150" Index Copernicus International (ICI)
crossrefTurnitin


Postgraduate, University of Merdeka Malang,
Terusan Dieng Street 62-64, Malang City, East Java, 65146, Indonesia.
Phone : (0341) 567617 Fax : (0341) 567617 Email jurnalafre@unmer.ac.id

Whatsapp : +6281332373081
Web
Analytics View My Stats

AFRE (Accounting and Financial Review)  Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Copyright ©2021 University of Merdeka Malang Powered by Open Journal Systems.