Open Access

Growth Opportunities Utilization: Debt Overhang or Asymmetric Information?

S. Martono
S. Martono
, 
Arief Yulianto
Arief Yulianto
 and 
Angga Pandu Wijaya
Angga Pandu Wijaya
   | Dec 05, 2021
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Published Online: Dec 05, 2021
Page range: 171 - 182
DOI: https://doi.org/10.2478/fman-2021-0013
Keywords
© 2021 S. Martono et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Time series on inter-industry debt to assets ratio (Source: IDX Statistics, 2009–2019)
Time series on inter-industry debt to assets ratio (Source: IDX Statistics, 2009–2019)

Result of correlation analysis (Source: IDX Statistics, 2009–2019)

Debt to Assets Ratio Age Size Growth sales
Debt to Assets Ratio 1 0.033379 0.111995 0.007558
Age 0.033379 1 0.045458 −0.06881
Size 0.111995 0.045458 1 0.009209
Growth sales 0.007558 −0.06881 0.009209 1

Time series data on firm age (Source: IDX Statistics, 2009–2019)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Agriculture 0.252 0.281 0.387 0.404 0.476 0.432 0.227 0.481 0.475 0.513 0.591
Basic industry and chemicals 0.361 0.495 0.497 0.473 0.527 0.493 0.485 0.487 0.490 0.449 0.447
Consumer goods industry 0.363 0.393 0.375 0.389 0.448 0.432 0.387 0.448 0.417 0.383 0.378
Infrastructure, utilities, and transportation 0.616 0.583 0.534 0.544 0.529 0.559 0.493 0.505 0.503 0.483 0.492
Mining 0.502 0.446 0.455 0.444 0.453 0.463 0.534 0.475 0.482 0.512 0.488
Miscellaneous industry 0.574 0.468 0.518 0.511 0.530 0.554 0.459 0.508 0.474 0.498 0.524
Property, real estate, and building construction 0.531 0.474 0.431 0.470 0.479 0.467 0.460 0.452 0.455 0.428 0.446
Trade, services, and investment 0.477 0.475 0.466 0.477 0.472 0.503 0.473 0.469 0.478 0.467 0.505
Minimal 0.460 0.452 0.458 0.464 0.489 0.488 0.440 0.478 0.472 0.467 0.484
Maximal 0.252 0.281 0.375 0.389 0.448 0.432 0.227 0.448 0.417 0.383 0.378

ANOVA test on leverage in inter-industry (Source: IDX Statistics, 2009–2019)

Sources SS df MS F P-value F crit RMSSE
Between groups 1.952 8 0.244 6.305 0.000 1.940 0.169
Within groups 179.710 4645 0.039 – – – –
Total 181.661 4653 0.039 – – – –

Descriptive statistics on inter-industry leverage (Source: IDX Statistics, 2009–2019)

Industry n Mean Standard deviation 25th percentiles Median 75th percentiles Kurtosis Skewness
Agriculture 113 0.452 0.226 0.257 0.468 0.607 5.464 1.147
Basic industry and chemicals 313 0.479 0.195 0.334 0.471 0.616 −0.757 0.111
Consumer goods industry 207 0.404 0.170 0.262 0.388 0.541 −0.890 0.231
Infrastructure, utilities, and transportation 290 0.520 0.176 0.399 0.533 0.650 −0.447 −0.290
Mining 231 0.478 0.195 0.318 0.463 0.616 −0.669 0.224
Miscellaneous industry 162 0.508 0.189 0.367 0.491 0.660 −0.959 0.051
Property, real estate, and building construction 382 0.462 0.175 0.336 0.474 0.581 −0.610 0.118
Trade, services, and investment 629 0.480 0.219 0.321 0.468 0.633 13.305 1.530
Whole industry 2327 0.476 0.198 0.327 0.474 0.618 5.549 0.693

ANOVA test on firm size intra-industry (Source: IDX Statistics, 2009–2019)

Sources SS Df MS F P-value F crit RMSSE Omega Sq.
Between groups 389.996 8 48.750 24.481 0.000 1.940 0.321 0.039
Within groups 9249.644 4645 1.991 − − − − −
Total 9639.640 4653 2.072 − − − − −

Descriptive statistics on firm size (Source: IDX Statistics, 2009–2019)

Industry n Mean Standard deviation 25th percentiles Median 75th percentiles Skewness Kurtosis
Agriculture 113 29.262 1.162 28.609 29.335 30.084 −0.625 0.364
Basic industry and chemicals 313 28.365 1.329 27.460 28.369 29.168 0.339 −0.140
Consumer goods industry 207 28.083 1.284 27.206 27.926 28.845 0.444 −0.014
Infrastructure, utilities, and transportation 290 28.856 1.531 27.886 28.752 29.809 −0.004 −0.692
Mining 231 29.118 1.468 28.242 29.205 30.259 −0.517 −0.359
Miscellaneous industry 162 28.090 1.229 27.186 27.730 28.631 0.960 0.025
Property, real estate, and building construction 382 28.899 1.338 28.038 28.942 29.893 −0.188 −0.311
Trade, services, and investment 629 28.161 1.433 26.890 28.197 29.243 0.046 −0.527
Whole industry 2327 28.533 1.439 27.434 28.515 29.563 0.045 −0.572

Regression analysis (Source: IDX Statistics, 2009–2019)

Dependent variable: growth sales 1 2
Debt asset ratio 0.009 0.010
P-value 0.716 0.680
Age − −0.024*
P-value − 0.001
Size − 0.002
P-value − 0.584
R2 0.000 0.005
Adj. R2 0.000 0.004
No. observation 2327 2327

Data description on firm age intra-industry (Source: IDX Statistics, 2009–2019)

Industry n Mean Standard deviation 25th percentiles Median 75th percentiles Kurtosis Skewness
Agriculture 113 2.470 0.596 2.197 2.485 3.091 0.866 −0.682
Basic industry and chemicals 313 2.761 0.699 2.303 3.135 3.219 1.414 −1.468
Consumer goods industry 207 2.747 0.720 2.197 3.178 3.258 0.708 −1.328
Infrastructure, utilities, and transportation 290 2.293 0.633 1.946 2.197 2.773 0.253 −0.641
Mining 231 2.581 0.472 2.303 2.485 2.944 2.355 −0.960
Miscellaneous industry 162 2.803 0.719 2.485 3.135 3.296 2.173 −1.612
Property, real estate, and building construction 382 2.620 0.622 2.303 2.602 3.178 1.080 −1.041
Trade, services, and investment 629 2.583 0.627 2.079 2.773 3.091 0.727 −0.995
Whole industry 2327 2.601 0.653 2.197 2.708 3.178 0.697 −1.006

ANOVA test on firm age intra-industry (Source: IDX Statistics, 2009–2019)

Sources SS Df MS F P-value F crit RMSSE Omega Sq.
Between groups 48.950 8 6.119 14.682 0.000 1.940 0.245 0.023
Within groups 1935.800 4645 0.417 − − − − −
Total 1984.750 4653 0.427 − − − − −
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