Company's Debt Research Articles

Bridging ESG and SDGs Clean Air and Water Through CSR Committee: A New Pathway for Sustainability in the Utility Sector

This study aims to bridge Environmental, Social, and Governance (ESG) principles with the Sustainable Development Goals (SDGs), particularly related to clean air and water, through the role of the Corporate Social Responsibility (CSR) committee in the utility sector. As global awareness of climate change rises, utility companies worldwide are adopting ESG strategies to reduce carbon emissions, improve energy efficiency, and manage water resources. This research proposes a new evaluation framework to assess the contribution of utility companies to achieving SDGs focused on air and water quality. Using data from annual reports and Refinitiv LSEG, the study examines the relationship between ESG scores, asset size, debt-to-equity ratio, and the moderating role of CSR committees in achieving SDG goals. Regression analysis results indicate that ESG scores have a significant positive influence on company contributions to achieving SDGs, especially in terms of clean air and water quality. Additionally, the CSR committee acts as an effective moderator in optimizing asset use and managing company debt to meet sustainability goals. This study provides both theoretical and practical contributions to support evidence-based decision-making for more sustainable policies in the utility sector.

Pengaruh Good Corporate Governance, Reputasi Audit, Dan Leverage Terhadap Integritas Laporan Keuangan Dengan Moderasi Kualitas Audit

This research is quantitative research which aims to analyze the influence of Good Corporate Governance, auditor reputation, and leverage on the integrity of financial reports with audit quality as a moderating variable. The research was conducted on mining sector companies listed on the Indonesia Stock Exchange (BEI) for the 2019-2023 period. The data used is secondary data with a purposive sampling method. The data testing techniques used include the classic assumption test, multiple linear regression test, and moderated regression analysis (MRA) test. The research results show that GCG and auditor reputation have no effect, while leverage has a positive effect on the integrity of financial reports. Meanwhile, audit quality is unable to moderate the influence of GCG, auditor reputation, and leverage on the integrity of financial reports. Therefore, companies need to pay attention to factors that can affect the integrity of financial reports, especially related to the company's debt level.

The Effect of Leverage and Political Connections on the Performance of State-Owned Enterprises

This study aims to examine the influence of leverage and political connections on the performance of state-owned enterprises (SOEs) with good corporate governance (GCG) as a moderating variable. The research uses a quantitative approach, with the population consisting of SOEs listed on the Indonesia Stock Exchange (IDX). The sample was selected using purposive sampling, resulting in 13 companies being chosen as the study's subjects. The results of the study indicate that leverage negatively affects company performance, meaning that the higher a company's debt, the lower its performance. Conversely, political connections have a positive impact on performance, suggesting that political involvement can provide advantages in enhancing a company's performance. Additionally, good corporate governance is found to positively influence company performance, reinforcing the importance of sound governance in supporting operational success. Good corporate governance also acts as a moderating variable. GCG weakens the negative relationship between leverage and company performance, while strengthening the positive impact of political connections on performance. This indicates that strong governance practices can help mitigate the adverse effects of high leverage and maximize the benefits of political connections that the company may have.

DOES SUSTAINABILITY DISCLOSURE HAVE A MODERATING ROLE IN EXAMINING FIRM VALUE IN BANKING INDUSTRY?

This study seeks to experimentally assess the impact of financial performance on the firm value of the banking subsector and examine sustainability disclosure as a moderating variable. The study focused on banking subsector companies listed on the IDX in 2020-2022. Multiple linear regression was used to test cross-sectional data processed with Eviews 12. The test results demonstrate that profitability has a considerable beneficial impact on firm value. Meanwhile, leverage minimizes firm value because the primary banking business process involves consumer loans and receivables. Therefore, investors pay little attention to company debt. Sustainability disclosure cannot balance the relationship between financial success and firm value. The sustainability disclosures need to meet investors' expectations. Stakeholders may have differing perspectives on the relevance and influence of sustainability data on profitability and firm value.

Bankruptcy Analysis Using the Altman Z-Score Model (Study on Retail Companies Listed on the Indonesia Stock Exchange)

Bankruptcy is a legal or economic event that often results in the complete cessation of all business activities and operations. This bankruptcy usually starts with liquidity problems, but is closely linked to situations where a company's debt exceeds its total assets. The objective of this study is to evaluate the effectiveness of the Altman Z-score model as a tool to predict bankruptcy. The main focus of this study is retail companies listed on the Indonesia Stock Exchange in 2021-2023. 31 companies participated in the study, supported by 93 financial statements. The researchers used purposive sampling method for the sampling process. The study uses the modified Altman Z-score method (1995) to analyze the obtained data. The analysis revealed that 17 companies (54.8%) could be classified as healthy. 3 companies (9.7%) were classified as weak, and 11 companies (36.7%) were expected to go bankrupt. These results provide insight into the financial health of the retail companies surveyed and highlight the importance of using predictive models to determine bankruptcy risk.

The Use of IPO Fund, Underpricing, and Survival: ESG-Driven Insights from Indonesian Firms

The IPO prospectus should disclose information on the use of IPO proceeds, which can be a reference for investors in making investment decisions. Companies conduct IPOs for investment, working capital, and debt repayment purposes. The use of IPO fund for investment and working capital gives a positive signal, while debt repayment gives a negative signal. Some companies also implement ESG (Environmental, Social, and Governance) policies after conducting an IPO. This research aims to test whether companies with ESG scores have different underpricing and survival phenomena compared to companies in general. This research was conducted on 148 Indonesian companies that conducted IPOs in the period 2008-2021. The results suggest that the use of IPO proceeds for investment and working capital has a positive effect on underpricing and survival. However, the use of IPO proceeds for debt repayment has no effect on underpricing. Moreover, the use of IPO proceeds for debt repayment in companies that obtain ESG scores has a positive effect on underpricing. Underpricing strengthens the effect of the use of IPO fund for investment on survival occurs in the sample of companies in general as well as companies that obtain ESG scores. The implication of this research suggests that investors do not consider IPOs as a return on debt in companies that obtain ESG scores as a negative signal to invest.

Debt Levels and Their Effect on The Profitability of Banking Firms at The Indonesia Stock Exchange

This study aims to determine the impact of debt levels on the profitability of banking companies listed on the Indonesia Stock Exchange. The research focuses on two variables: the Debt-to-Equity Ratio (DER) and Return on Assets (ROA). Quantitative research with simple linear regression analysis is a type of study aimed at understanding the relationship between two variables. The population of this study includes 47 banking companies listed on the Indonesia Stock Exchange (IDX), from which a sample of 4 banking companies was selected using purposive sampling. This qualitative research employs simple linear analysis using SPSS 25.0 as the analytical tool. The results, based on significant values and partial values, indicate that an increase in debt levels among banking companies listed on the Indonesia Stock Exchange leads to a decrease in profitability. This is because the debt of banking companies is not solely used for operational activities but also for providing credit funds to customers

The Influence Of Environmental, Social, Governance (ESG) Pillars And State Ownership On The Company's Debt Costs

Topics related to environmental, social, and governance are currently interesting to research because the importance of sustainability principles in the business world is increasingly recognized. This research investigates the influence of the ESG pillar and state ownership on the cost of debt in non-financial companies. The analysis was carried out on public companies in emerging Asian countries during the period 2016 to 2023 using panel data regression. Using various theories such as agency theory, stakeholder theory, and signaling theory, this research proves that state-owned companies with better ESG scores have lower debt costs. An unexpected finding is that the social pillar has a positive effect on the cost of debt. For the environmental pillar, although it is negatively related to the cost of debt, the effect is not significant. Meanwhile, the governance pillar has a significant negative influence on the cost of debt in accordance with agency theory. It is hoped that the results of this research will contribute to providing insight to stakeholders, especially managers and company owners, regarding the role of ESG and state ownership in the magnitude of corporate debt costs

DEVELOPMENT TRENDS OF GEORGIAN CAPITAL MARKET AND PENSION FUND

Since January 2019, a cumulative pension system has been launched in Georgia. The reform’s main goals are reducing fiscal pressure and ensuring a "decent" pension at retirement age. In addition, the possible positive impact of the accumulated pension fund on the capital market of Georgia is important. The purpose of the paper is to analyze the current reality of the capital market of Georgia. In order to determine what opportunities it creates in the investment process of the Georgian pension agency. During the research, we mainly used statistical analysis methods. The discussion is based on indicators such as: composition of total debt of non-financial companies in Georgia; liquidity and activity on the Georgian stock exchange; total balance of corporate bonds denominated in GEL; the ratio of the total capitalization of the stock market; assets of the Georgian pension agency and its investment portfolio. Due to research findings, although there is a lack of institutional investors in the financial markets of Georgia, there are no existing securities in the local market, which would allow the pension agency to make more investments in the local capital market. Growth at such a rate requires investing in assets with a higher risk than the existing ones. In particular, since the capital market assets have a higher rate of return, it is important for the policy of the pension agency to either increase the limits for investing in the foreign market, or to be more opportunities and alternatives in the local capital market.

Debt Accounting System Analysis in Accounting Information Systems

The Debt Information System and Accounting Information System support and collaborate with each other to ensure that the company's financial information is well managed, regulatory compliance is maintained, and the right business decisions can be taken. This research uses a literature study method with the data used is secondary data. The research results show that the Debt Accounting System and the Accounting Information System are interrelated in processing and producing financial reports, especially in this case company debt. This is also supported by the sophistication of information technology, user capabilities, user participation, and top management support.

Financial Resources and Firm Performance

This research aims to determine the effect of financial resources on company performance. This research uses a sample of manufacturing companies listed on the Indonesia Stock Exchange 2016-2022. Company resources become an important part of the development the company, especially financial resources which are the main factor in carrying out the company's operational activities. The company's performance becomes benchmark for investors and creditors to assess the company's condition. The company's financial resources in this research come from cash flow, liquidity, and leverage. Cash flow used financial analysis to determine the income and expenses made by the company. Liquidity used to assess the company's ability to meet its obligations. Leverage as company debt used to finance and purchase company assets. The results showed that only free cash flow had significant effect on company performance. This happens because the company's performance is reflected in the higher will increase the amount of profit earned by investors. This shows that the company utilizes ability of the company's internal resources to utilize financial resources to create competitive advantage so that the company's performance can manage its cash flow to finance assets owned by the company. The results of this research support the resource-based theory-based view.

Pengaruh Likuiditas dan Solvabilitas Terhadap Perubahan Laba Pada Perusahaan Manufaktur (Studi Empiris Pada Sektor Aneka Industri)

Liquidity ratios and solvency ratios are measurements to determine the extent of changes in profits in a company. This research was conducted in manufacturing companies in various industrial sectors that are registered on the IDX. In a research, there must be a research method in it, the method used in this research is the liquidity ratio to measure the Current Ratio (current assets) and the Debt to Equity Ratio which is used to determine the comparison between the recapitulation of company debt and company capital, the technique used to take samples namely purposive sampling. Hypothesis testing in this research was carried out using multiple linear regression analysis techniques. The conclusion that can be drawn from the results of this research is that the Current Ratio score influences changes in profit as evidenced by a significant value of 0.008 < 0.05. Meanwhile, the Debt to Equity Ratio has a value of 0.055>0.05, which means that the debt to equity ratio has no significant impact on changes in profits. Simultaneously, the current ratio and debt to equity ratio have a significant impact on changes in profit.

Pengaruh Book Tax Differences Dan Tingkat Hutang Terhadap Persistensi Laba Pada Perusahaan Sektor Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2019 - 2023

In the decision-making process, information about profits plays an important role. The right decision often depends on the quality of the earnings information itself. Quality profits are profits that can provide an accurate indication of future porfit estimates. Consistency in earnings indicates superior earnings quality over time. In addition, differences between recorded profits in books and profits subject to tax (book tax differences) can affect profit persistance due to differences in the recognitions of incopme and costs according to accounting standards and tax regulations. Apart from that, another factor that also has the potential to influence profit persistence is the company’s debt level. In an effort to explore the impact of book tax differences, as well as debt levels on earnings persistence, this research was conducted with a clear aim. The method in used is a careful quantitative approach. The population studied included companies in the banking sector listed on the Indonesia Stock Exchange (BEI) during the period 2019 to 2023. The sample selection procedure was carried out using SPSS 26 software to analyze the patterns that emerged. From the results of the analysis that has been carried out, it was found that there is a significant and positive influence between the difference between profit recognition in financial statements and tax imposition on the resilience of company profits. On the other hand, ther is no significant relationship between the level of company debt and earnings resilience measured in this research.

A Quantitative Analysis of Default Risk Using Machine Learning and SHAP Value Interpretation

Abstract In finance, creating a model that balances risk reduction with opportunity is essential. This investigation addresses the necessity for risk evaluation frameworks that combine efficiency with adaptability, thus preserving opportunities for transactions critical to some organizations. The present study identifies, within a factoring process involving two key players: the invoice seller and the debtor, the essential variables that determine the likelihood of the debtor defaulting on the invoice payment. The event of non-payment is most often associated with the debtor's inability to pay due to insolvency, making it crucial in this type of activity to emphasize an efficient credit scoring system capable of proactively highlighting a debtor company with a high risk of default. Nonetheless, some companies pass this filter and enter the factoring process, but end up being unable to pay. The study identifies them based on a set of real data and uses supervised machine learning techniques to select the optimal classification model, also highlighting the variables with a major impact on the target. The specialized literature is focused on identifying the models that perform best in the credit scoring activity or studies that identify the non-payment behavior of clients. What this work adds is the combination of these two dimensions, for example, it provides an additional filter to credit scoring, using parameters identified as essential in determining defaulters and using them as inputs for an unsupervised learning model, thus classifying the entire population of companies in Romania to identify clusters containing the highest proportion of non-payment companies.

ESG and Leverage Adjustment: Based on Stakeholder Theory and Signaling Theory

Many of today's firms are suffering from leverage imbalance. A company's debt can negatively impact its performance when it deviates from its target leverage. Thus, this paper discusses adjusting the firm's capital structure to an optimal one. Combining stakeholder theory and signaling theory, this paper discusses how and under what circumstances ESG may have an impact on capital structure, from which the paper proposes the following conjectures: whether ESG can have a significant impact on a firm's target leverage; how ESG can affect a firm's capital structure when the firm has an asymmetry of information; and whether ESG can be tailored to economic environments that can have an impact on a firm's capital structure changes have an effect. After the inference of this paper, ESG can effectively influence firms' capital structure and accelerate the adjustment speed of firms' leverage to target leverage under the state of firms' information transparency. ESG will be more effective in regulating firms' target leverage in the downturn of the economic environment. The analytical framework of this paper may also be effectively applied to other research directions, such as corporate investment decisions, cash holdings, and dividend policies.

Pengaruh Profitabilitas, Kepemilikan Manajerial dan Pertumbuhan Perusahaan Terhadap Kebijakan Utang

This research uses multiple linear analysis testing methods, using manufacturing companies listed on the IDX for the 2019-2023 period. The results show that profitability has a negative and significant influence on the company's debt policy. Managerial ownership has no influence on debt policy in manufacturing companies. This study supports the signaling theory which states that debt can be a signal to investors.

Dual holdings and shareholder–creditor agency conflicts: Evidence from the syndicated loan market

AbstractWe examine implications from the expansion of private equity (PE) firms into the collateralized loan obligation (CLO) (i.e., leveraged lending) business. Due to similarities in the investment universes of CLO managers and PE firms, asset managers running both of them frequently hold debt and equity claims of the same company. Our results indicate lower credit costs for these companies through the mitigation of shareholder–creditor agency conflicts. The lower funding costs imply increased equity returns for the sponsoring PE firms. In addition, our findings suggest that PE‐affiliated CLO managers benefit from informed trading in the secondary leveraged loan market.

Does the leverage of a company differ when led by a CEO from a reputable university?

This study investigates the influence of the educational background of Chief Executive Officers (CEOs) from reputable universities on corporate leverage. Company leverage is an important financial policy that determines a company’s success. A review grounded in upper echelons theory indicates a correlation among CEO characteristics, strategic decisions, and corporate outcomes, with financial leverage serving as the representation in this study. The study was conducted on top-rated Environmental, Social, and Governance (ESG) companies in Southeast Asia during 2020–2022 using 1108 observations. Data were obtained from annual reports, company websites, and Refinitiv, and analyzed using regression. The results indicate that CEOs with an educational background from reputable universities tend to have lower leverage. This suggests that CEOs from prestigious universities tend to exhibit risk-averse tendencies when formulating or executing company debt policies. This study contributes to the literature on the correlation between CEO educational backgrounds and firms’ leverage, providing insight into the relationship between CEOs from reputable universities and the level of corporate leverage. It is also expected to contribute to the development of Upper Echelons Theory and the implementation of company policies such as CEO qualifications, CEO recruitment, and debt policy.

An Empirical Review of Capital Structure Decision-Making

The capital structure reflects the proportional relationship between a company's debt and equity, indicating the company's ability to repay debt and refinance. The quality of the capital structure determines the company's future profitability and development trend, serving as an indispensable indicator of the company's financial situation. However, with approximately 70 million companies in the global market, their scales and operating conditions vary in stability and growth. Additionally, their financial and asset structures differ significantly and are subject to macroeconomic fluctuations every year. The risk preferences and attitudes of managers and investors in every enterprise are subjective and affect the development plan of the enterprise. Moreover, tax and fiscal policies in different countries and regions also influence the capital strategies of enterprises. Furthermore, after a successful listing, the capital structure of the enterprise undergoes fundamental changes, diversifying the sources of funds and experiencing new changes in operating models, which is beneficial to the future operational planning and financial strength of funds. Nevertheless, not all companies that go public are beneficial to their development, such as Huawei, Heinz Group, Koch Industrial Group, etc., due to changes in capital structure after going public being detrimental to future corporate profits. Hence, the capital structure of enterprises in different countries, regions, or types of scale needs to be tailored to local conditions. Enterprises should analyze specific situations to establish a more reasonable capital structure with the aim of optimizing company operations.

Kinerja Keuangan PT Industri Jamu dan Farmasi Sido Muncul,TBK Periode 2017-2021

The purpose of this research is to describe and analyze the financial performance of PT Industri Jamu dan Farmasi Sido Muncul,Tbk for the period 2017-2021. The research method used is quantiative descriptive, using financial ratio analysis and trend analysis. The research data used is financial reports. The results of reseacrh on financial ratio analysis show the financial performance of PT Industri Jamu dan Farmasi Sido Muncul,Tbk for the 2017-2021 periode as a whole is in goos condition except for the receivable turnover ratio which has experienced an increase which shows that the company is not good at managing it’s receivable. The results of the trend analysis show that the financial performance of PT Industri Jamu dan Farmasi Sido Muncul,Tbk for the period 2017-2021 tends to decrease in terms of current ratio, cash ratio, dan receivables turnover.The debt to asset ratio and debt to equity ratio are experiencing an increasing trend, this condition is not good because the company debt burden is increasing every year. Total asset turnover, net profit margin, and return on investment tend to increase, indicating better managemen of total assets. So that company gets better profits every year. Keywords: Finacial Performance, Liquidity, Activity, Solvency, Profitability