Q&A with Award Winners

Award-winning scholar talks about his research and company limitations on the Investment Opportunity Set (IOS)


Name: Khoirul Hikmah, SE, M.Si.

Article Tittle: The Effect of Companies’ Excellence and Limitations Factors on the Investment Opportunity Set: Agency Theory Approach

Institution: Universitas Pembangunan NAsional “Veteran” Yogyakarta, Indonesia. Jl.SWK 104 Lingkar Utara, Condong Catur, Yogyakarta.

Email: khoirulhikmah@ymail.com

Research Interest: Management Finance


What inspired you to do this research?

To analyze the influence of factors of excellence and company limitations on the Investment Opportunity Set (IOS) on Indonesia go public companies.

Tell us about your research?

This study aims to analyze the influence of factors of excellence and company limitations on the Investment Opportunity Set (IOS). The research population is all go public companies listed on the Indonesia Stock Exchange (IDX) in 2008-2016. The sampling technique uses a purposive sampling method. The data processing uses regression equations with a panel data models and it is analyzed by an analytical confirmatory factor analysis and eviews. The researchers develop the use of IOS proxy by using 8 variables, namely MVABVA, MVEBVE, PER, CAPBVA, CAPBVE, Tobins’Q, PPEFVA, INS. The 3 variables of the companies’ advantages of the company are multinationality, size and profitability, while the 2 variables of the companies’ limitations are leverage and systematic risk. The results of the study indicate that companies’ multinationality has a positive effect on IOS, the research hypothesis is not supported. The size of the company has a positive effect on IOS, the research hypothesis is not supported. The profitability has a positive effect on IOS, the research hypotheses is supported. The companies’ leverage has a negative effect on IOS, the research hypothesis is supported. The companies’ systematic risk has a negative effect on IOS, the research hypotheses is supported

What is Innovative about your research?

We use IOS in this research. Investment Opportunity Set (IOS) has several proxies in measuring it. There are 8 proxies used in this study, namely MVEBVE, MVABVA, Tobin’Q, PER, PPEFVA, CAPBVA, CAPMVA and INS.

How important do you think this research will be in the future?

I think all companies need to attention to funding policies, one of them is by considering the factors that influence IOS.

What other advice would you give to a young researcher?

Give your mind to all benefits

 

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