Effect of Debt Restructuring Through Debt To Equity Swap Policy Towards Financial Performance of PT. XYZ

Abstract view : 30 times
PDF - 17 times


Abstract


This study aims to determine the effect of debt restructuring through the debt to equity swap policy on the financial performance of PT XYZ. In this study the data used were from 2012 to 2018 ago. In this study time interest earnings are used as control variables, while the main variables are profitability ratios, activity ratios and liquidity ratios. The method of analysis is done by using multiple regression analysis. Based on the results of hypothesis testing, it was found that debt restructuring as measured by the debt to equity ratio has a significant effect on profitability and activity ratios, while debt restructuring has no effect on PT XYZ's corporate liquidity.


Keywords


Debt Restructuring, Liquidity, Activities & Profitability

Full Text:

PDF

References


REFERENCE

Akerlof, G. 1970. The Market for Lemons: Quality Uncertainty and The Market Mechanism. Quarterly Journal of Economics 84:485-500.

Bowman, E.H., & Singh, H. 1999. When Does Restructuring Improve Performance?, California Management Review, Winter, 34 – 54.

Bulow, J. & K. Rogoff. 1989. Sovereign Debt: Is to Forgive to Forget. The American Economic Review. Vol. 79, 1: 43-50.

Bulow, J. 2002. First World Governments and Third World Debt. Brookings Papers on Economic Activity 1: 229-254.

Bulow, J. and K. Rogoff. 1989. A Constant Reconstructing Model of Sovereign Debt. Journal of Political Economy. Vol 97, 1:155-178.

Crum & Goldberg. 1998. National Oil and Gas Policy Reforms, Journal of Financial Economics, Vol. 2, 261 – 300.

Dewi, N. 2004. Model Restrukturisasi Utang sebagai Dampak dari Karakteristik Keuangan Perusahaan dan Kondisi Industri. E-journal Universitas Padjadjaran. www. pustaka.unpad.ac.id/wp-content/12 April 2010

Dodd, R. 2002. Sovereign Debt Restrukturing. The Financier Vol 9 No. 1-4

Fernandez, R. & R.W. Rothenthal, 1988. Sovereign Debt Renegotiations: A Strategic Analysis. NBER Working Paper 2597

Friedman, B.M. 2000. Debt Restructuring. National Bureau of Economic Research, working paper 7722:1-36.

Gale, D. & M. Hellwig. 1985. Incentive-Compatible Debt Contracts: The One-Period Problem. Review of Economic Studies. October, 52: 647-63

Gibbs, K.L. 2007. Accounting Management and Control, John Murray (Publisher) Ltd., London.

Haryono Y. 2009. Restrukturisasi Utang Melalui Kebijakan Debt to Equity Swap dan Pengaruhnya terhadap Struktur Keuangan PT X. E-journal Universitas Sriwijaya Edisi Januari.

Ismail, T.H., Abdou, A.A. & Annis, R.M. 2011. Review of Literature Linking Corporate Performance to Mergers and Acquisitions, The Review of Financial and Accounting Studies, ISSN 1450-2812, Issue 1, 89-104.

Ismail, T.H., Abdou, A.A., & Annis, R.M. 2010. Exploring Improvements of Post- Merger Corporate Performance: The Case of Egypt, The Icfai University Journal of Business Strategy (Forthcoming).

Jin, Z., Dehuan, J., & Zhigang, F. 2004. The Impact of Business Restructuring on Firm Performance – Evidence Prom Publicly Traded Firms in China, Academy of Accounting and Financial Studies Journal, September, 1-6.

King, D., Dalton, D., Daily, C. & Covin, J. 2004. Meta-Analysis of Post-Acquisition Performance: Identifications of Unidentified Moderators, Strategic Management Journal, February, 187 – 201.

Kinshore, R.M. 2004. Financial Management, Taxman Allied Services Ltd., New Delhi.

Kling, G. 2006. The Long Term Impact of Mergers and the Emergence of a Merger Wave in Pre-World War I Germany, Explorations in Economic History, 43(4), 667 -688.

Mantravadi, P. & Reddy, A.V. 2008. Post-Merger Performance of Acquiring Firms from Different Industries in India, International Research Journal of Finance and Economics, ISSN 1450 – 2887, 192-204.

Melek Kalkuna. 2012. Corporate Finance 11th Edition. Mc Graw-Hill, Newyork.

Mishra, P. & Chandra, T. 2010. Mergers, Acquisitions and Firms’ Performance: Experience of Indian Pharmaceutical Industry, Eurasian Journal of Business and Economics, 3(5), 111 – 126.

Modigliani, F. & M.H. Miller. 1958. The Cost of Capital, Corporation Finance and the Theory of Investment. American Economic Review 48: 261-297.

Modigliani, F. 1963. â€Corporate Income Texas and the Cost of Capitalâ€, American Economic Review 48: 433-443.

Noe T.H and Wang J. 2000. Strategic Debt Restructuring. The Society for Financial Studies 13:985-1015.

Pazarskis, M., Vogiatzogloy, M., Christodoulou, P. & Drogalas, G. 2006. Exploring the Improvement of Corporate Performance after Mergers – the Case of Greece, International Research Journal of Finance and Economics, ISSN 1450 – 2887, Issue 6, 184 – 192.

Peter, D. 2003. Restructuring Corporate Debt In Latin America. International Financial Law Review:1.

Roll, R. 1986. The Hubris of Corporate Takeovers, Journal of Business, 59(2), 197 – 216.

Ross, Westerfield Jeff. 2012. Corporate Finance 11th Edition. Irwin, McGraw-Hill

Saboo, S. & Gopi, S. 2009. Comparison of Post-Merger Performance of Acquiring Firms (India) involved in Domestic and Cross-Border Acquisitions, MPRA paper, No. 19274, University Liberary of Munich, Munich.

Sartono, Agus. 2010. Dasar Dasar Manajemen Keuangan (Teori dan Aplikasi). Yogyakarta. BPFE UGM,

Selvam, M., Babu, M., Indhumathi, G. & Ebenezer, B. 2009. Impact of Mergers on Corporate Performance of Acquirer and Target Companies in India, Journal of Modern Accounting and Auditing, Vol. 5, 55 -64.

Sterman, I.A. 2002. Mergers and Acquisition, Oxford University Press, New York

Ullah, S., Farooq, S.U., Ullah, N. & Ahmad, G. 2010. Does Merger Deliver Value? A Case of Glaxo SmithKline Merger, European Journal of Economics, Finance and Administrative Sciences, ISSN 1450 – 2275, Issue 24.

Yeh, T. and Hoshino, Y. 2002. Productivity and Operating Performance of JapaneseMerging Firms: Keiretsu Related and Independent Mergers, Japan and the World Economy, 347 – 366.



DOI: https://doi.org/10.22202/economica.2020.v8.i2.3667



Refbacks

  • There are currently no refbacks.


Economica: Jurnal Program Studi Pendidikan Ekonomi STKIP PGRI Sumatera Barat  has been covered by the following services:

This work is licensed under a Creative Commons Attribution 4.0 International License.

 

 

Publish by STKIP PGRI Sumatera Barat


Statistik Economica: Jurnal Program Studi Pendidikan Ekonomi STKIP PGRI Sumatera Barat