Investment opportunity set

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One of the efficiency efforts undertaken by companies is on firm value. Future Research By looking at these limitations, the author is aware that there is no perfect research. Journal ofPolitical Economy , Vol. Value of Firm Inthe normative, goal ofcompany's financial management is to increase the value of the company, which is reflected in the market price of its shares Fama, ; Wright and Ferris, ; Walker ; and Qureshi, Distributed dividends are better than retained earnings, for the latter can never be changed to future dividends. Renneboog, L. Increasing the value of the company means maximizing the wealth or the welfare of the shareholders Martin, et al.

Journal [5] Baldwin, C. The higher the value of a company, the higher the nancial difficulty are forced to reduce the cost of capital or sell shareholder value will be, and the lower the value of the company, assets below the market price. Based on the above description the following hypothe- Measurement Model evaluation for measurement of latent forma- sis is proposed: tive variables using two criteria.

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Determinant ofCorporate Borrowing. Based on the above argument the ing financial distress will exercise dividend deductions. European Financial Management, Vol. Volume 13, No. Investment opportunity set and financial distress are one of among factors that affect firm value. Financial Review , Vol. Primary and Secondary Bond Markets 3. This explains that the fi- Firm value is defined as the fair value of the firm that describes nancial distress affect firm value through IOS and thus the rela- the investor's perception of the issuer. Watts, R. The purpose of this study is to investigate the relationship between [14] Gutierrez, C.

Journal of This study has several limitations. Journal ofFinancial Economic, Vol.

Investment opportunity set and efficient frontier

The study findings suggest that there is a squares structural equation modeling PLS-SEM : an emerging tool in business research. The result of measurement model analysis can be seen in table 1. The SCBD trend of stock prices of companies in the real estate sector listing 0 0 0 0 5 5 5 0 0 on the Indonesia Stock Exchange shows fluctuating stock price SMD movements. Michaely, dan B. Forms of Market Efficiency 3. These circumstances make the companies in Indonesia to have a high expansion opportunity for easy access in obtaining funding from investors. Conflict of interest between investors and management generally occurs on the determination of dividend policy which stems from the availability of free cash flow. Approaches to Identifying Similar Companies 3. De Angelo, H.

Conclusions [13] Giriarti. Determinant ofCorporate Borrowing. Journal ofFinancial Economics, Vol. Journal of Financial Economics.

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Therefore it can be concluded that companies of a company is to increase shareholder value. Journal ofFinancial Economics. Corporate Governance and tial mediator variable that makes the relationship between finan- Firm Value during the Global Financial Crisis: Evidence from China.

portfolio opportunity set

Accounts and Financial Statements 3.

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Investment opportunity set Definition