Volume 4 Issue 3

Authors: Palti Maruli Tua Sitorus; Adler H Manurung; Tubagus NA Maulana; DS Priyarsono

Abstract: The purpose of the paper are (1) to study the difference capital structure based on the average of Debt Equity Ratio, Ownership Structure and Distruptive Technological Change; (2) to find out if the company has a target capital structure; (3) to know the influence of profitability, the age of firm, asset structure, growth and business risk of the capital structure on a telecommunications company in Indonesia. In processing data, we are using analysis of variance, partial adjusment model and panel data regression techniques. The result of the research shows that there is no difference between capital structure of the company, based on ownership structure and the technology used. Telecommunications companies in Indonesia have a target capital structure with the speed adjustment of 74.89% within 3 months. A significant factor affecting capital structure is profitability. Capital structure on telecommunication operators companies in Indonesia did not have differences, but it has a target of capital structure and determining structure recently affected by level profitability.

Keywords: ANOVA; Data Panel; Capital Structure; Partial Adjusment Model; Telecommunication


Authors: M. John Foster

Abstract: All foreign direct investment (FDI) projects should prudently be evaluated in terms of a full set of criteria, i.e. holistically, rather than purely on the narrow financial basis which is too often the case. This paper considers a schema or screening device (an ‘FDI-screen’) designed to deliver such a holistic approach when operated in conjunction with normal financial appraisal tools. Although initially designed for use by firms to evaluate individual projects or project clusters (i.e. looking outwards), it can also be readily adapted for other uses such as host countries assessing their potential attractiveness to would-be investors, or by external agents seeking to gain an overall perspective of a host’s desirability for FDI (i.e. an inbound view). The schema is used in this second way, applied to data from three developing countries, China (the PRC), Pakistan and Burma. The paper thereby both illustrates the summarising and presentational power of models such as the FDI-screen, a fairly simple multi-criteria decision making model, and also highlights just how varied the picture may be for differing developing (or even LDC) economies.

Keywords: FDI; Evaluation; Holistic; Developing Economies; Asia