The interdependence of managerial capabilities toward investment decisions of manufacturing companies on IDX period 2014-2016
DOI:
https://doi.org/10.26740/bisma.v12n2.p107-124Keywords:
go-public manufacturing companies, investment decision, managerial abilityAbstract
Following the opening of the ASEAN Economic Community (AEC), Indonesian companies must have a reliable manager to benefit from the existence of this AEC. This research aims to explain the effect of managerial ability on investment decisions. Therefore, the dependent variable in this study is the company's fixed-asset investment decision, while the independent variable is the managerial ability to improve the efficiency of company resources. The sample of this study is go-public manufacturing companies in 2011-2016. This study uses multiple linear analysis techniques such as data envelopment analysis with a banxia frontier analyst as an analysis tool. The results showed managerial ability harmed the investment decision that reflected by the company's fixed assets improvement.
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Rapach, D. E., Strauss, J. K., & Zhou, G. (2013). International stock return predictability: What is the role of the united states? Journal of Finance, 68(4), 16331662. http://doi.org/10.1111/jofi.12041.
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Silva, A. C. (2010). Managerial ability and capital flows. Journal of Development Economics, 93(1), 126136. http://doi.org/10.1016/j.jdeveco.2009.04.005.
Stoian, M. C., & Rialp-Criado, A. (2010). Analyzing export behavior through managerial characteristics and perceptions: A multiple case-based research. Journal of Global Marketing, 23(4), 333348. http://doi.org/10.1080/08911762.2010.504522.
Sun, L. (2016). Managerial ability and goodwill impairment. Advances in Accounting, 32(March 2016), 4251. http://doi.org/10.1016/j.adiac.2016.02.002.
Wakil, G. (2014). Market-to-book ratio and conditional conservatism: Firms voluntary expensing of employee stock options. Accounting Research Journal, 27(2), 124149. http://doi.org/10.1108/ARJ-11-2012-0088.
Wilden, R., Gudergan, S. P., Nielsen, B. B., & Lings, I. (2013). Dynamic Capabilities and Performance: Strategy, Structure and Environment. Long Range Planning, 46(12), 7296. http://doi.org/10.1016/j.lrp.2012.12.001.
Zhao, W., Fogg, D. K., & Kaplan, M. J. (2015). A novel image-based quantitative method for the characterization of NETosis. Journal of Immunological Methods, 423, 104110. http://doi.org/10.1016/j.jim.2015.04.027.
Andersson, S., & Evers, N. (2015). International opportunity recognition in international new ventures”a dynamic managerial capabilities perspective. Journal of International Entrepreneurship, 13(3), 260276. http://doi.org/10.1007/s10843-015-0149-5.
Andreou, P. C., Karasamani, I., Louca, C., & Ehrlich, D. (2017). The impact of managerial ability on crisis-period corporate investment. Journal of Business Research, 79(November 2016), 107122. http://doi.org/10.1016/j.jbusres.2017.05.022.
Bahri Sales, J., Baybordi, A., Naghizadeh Aydenlu, M., & Asaldoost, N. (2015). Measuring the effect of managerial ability on earning quality. Management Science Letters, 5(July 2015), 821826. http://doi.org/10.5267/j.msl.2015.7.005.
Bank Indonesia. (2009). Krisis Ekonomi Global dan Dampaknya terhadap Perekonomian Indonesia. Outlook Ekonomi Indonesia, 1, 4168. Acces from website Bank Indonesia: https://www.bi.go.id/id/ruang-media/info-terbaru/Pages/news_oei_0109.aspx/.
Berk, J. B., & Stanton, R. (2007). Managerial ability, compensation, and the closed-end fund discount. Journal of Finance, 62(2), 529556. http://doi.org/10.1111/j.1540-6261.2007.01216.x.
Berrospide, J. M., & Edge, R. M. (2010). The effects of bank capital on lending: What do we know, and what does it mean?. International Journal of Central Banking, 6(4), 554. http://doi.org/10.17016/feds.2010.44.
Bligh, M. C., Pearce, C. L., & Kohles, J. C. (2006). The importance of self- and shared leadership in team based knowledge work: A meso-level model of leadership dynamics. Journal of Managerial Psychology, 21(4), 296318. http://doi.org/10.1108/02683940610663105.
Carnahan, S., Agarwal, R., & Campbell, B. (2010). The Effect of Firm Compensation Structures on the Mobility and Entrepreneurship of Extreme Performers. SSRN Electronic Journal, 140. http://doi.org/10.2139/ssrn.1555659.
Chen, Y., Podolski, E. J., & Veeraraghavan, M. (2015). Does managerial ability facilitate corporate innovative success?. Journal of Empirical Finance, 34, 313326. http://doi.org/10.1016/j.jempfin.2015.08.002.
Cook, W. D., Tone, K., & Zhu, J. (2014). Data envelopment analysis: Prior to choosing a model. Omega (United Kingdom), 44, 14. http://doi.org/10.1016/j.omega.2013.09.004.
Corfee-Morlot, J., Marchal, V., Kauffmann, C., Kennedy, C., Stewart, F., Kaminker, C., & Ang, G. (2012). Towards a green investment policy framework: the case of low-carbon, climate-resilient infrastructure. OECD Environment Working Papers, 02(48), 160. http://doi.org/10.1787/5k8zth7s6s6d-en.
Demerjian, P., Lev, B., & McVay, S. (2012). Quantifying managerial ability: A new measure and validity tests. Management Science, 58(7), 12291248. http://doi.org/10.1287/mnsc.1110.1487.
Disatnik, D., Duchin, R., & Schmidt, B. (2014). Cash flow hedging and liquidity choices. Review of Finance, 18(2), 715748. http://doi.org/10.1093/rof/rft006.
Giat, Y. (2013). The Effects of Output Growth on Preventive Investment Policy. American Journal of Operations Research, 03(06), 474486. http://doi.org/10.4236/ajor.2013.36046.
James, P., & Steger, M. B. (2014). A Genealogy of ˜Globalization: The Career of a Concept. Globalizations, 11(4), 417434. http://doi.org/10.1080/14747731.2014.951186.
Javidan, M., & Bowen, D. (2013). The œGlobal Mindset of managers: What it is, why it matters, and how to develop it. Organizational Dynamics, 42(2), 145155. http://doi.org/10.1016/j.orgdyn.2013.03.008.
Koijen, R. S. J. (2014). The cross-section of managerial ability, incentives, and risk preferences. Journal of Finance, 69(3), 10511098. http://doi.org/10.1111/jofi.12140.
Lin, J. M., Schroeder, A., & Allada, R. (2005). In vivo circadian function of casein kinase 2 phospohorylation site in Drosophila PERIOD. J. Neurosci. 25(48), 1117511183. http://doi.org/10.1523/jneurosci.2159-05.2005.
Mubin, M., Lal, I., & Hussain, A. (2014). Determinant of Return on Assets and Equity and Industry Wise Effects: Evidence from KSE (Karachi Stock Exchange). SSRN Electronic Journal, 5(15), 148158. http://doi.org/10.2139/ssrn.2372792.
Oh, S., Yang, H., & Kim, S. W. (2014). Managerial capabilities of information technology and firm performance: Role of e-procurement system type. International Journal of Production Research, 52(15), 44884506. http://doi.org/10.1080/00207543.2013.867084.
Pomfret, R. (2013). ASEANs new frontiers: Integrating the newest members into the ASEAN economic community. Asian Economic Policy Review, 8(1), 2541. http://doi.org/10.1111/aepr.12000.
Proudlove, N. (2000). Using Excel for data envelopment analysis. Manchester: Manchester School of Management Working Papers.
Rapach, D. E., Strauss, J. K., & Zhou, G. (2013). International stock return predictability: What is the role of the united states? Journal of Finance, 68(4), 16331662. http://doi.org/10.1111/jofi.12041.
Shapiro, S. P. (2005). Agency Theory. Annual Review of Sociology, 31(1), 263284. http://doi.org/10.1146/annurev.soc.31.041304.122159.
Silva, A. C. (2010). Managerial ability and capital flows. Journal of Development Economics, 93(1), 126136. http://doi.org/10.1016/j.jdeveco.2009.04.005.
Stoian, M. C., & Rialp-Criado, A. (2010). Analyzing export behavior through managerial characteristics and perceptions: A multiple case-based research. Journal of Global Marketing, 23(4), 333348. http://doi.org/10.1080/08911762.2010.504522.
Sun, L. (2016). Managerial ability and goodwill impairment. Advances in Accounting, 32(March 2016), 4251. http://doi.org/10.1016/j.adiac.2016.02.002.
Wakil, G. (2014). Market-to-book ratio and conditional conservatism: Firms voluntary expensing of employee stock options. Accounting Research Journal, 27(2), 124149. http://doi.org/10.1108/ARJ-11-2012-0088.
Wilden, R., Gudergan, S. P., Nielsen, B. B., & Lings, I. (2013). Dynamic Capabilities and Performance: Strategy, Structure and Environment. Long Range Planning, 46(12), 7296. http://doi.org/10.1016/j.lrp.2012.12.001.
Zhao, W., Fogg, D. K., & Kaplan, M. J. (2015). A novel image-based quantitative method for the characterization of NETosis. Journal of Immunological Methods, 423, 104110. http://doi.org/10.1016/j.jim.2015.04.027.
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2020-04-05
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Yunanto, Y., Suhariadi, F., & Yulianti, P. (2020). The interdependence of managerial capabilities toward investment decisions of manufacturing companies on IDX period 2014-2016. BISMA (Bisnis Dan Manajemen), 12(2), 107–124. https://doi.org/10.26740/bisma.v12n2.p107-124
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