Sensitivity of Size-measure in Firm-life Cycle Theory: Total Asset vs Total Sales


Arief Yulianto, FE Manajemen (2022) Sensitivity of Size-measure in Firm-life Cycle Theory: Total Asset vs Total Sales. Jurnal Dinamika Manajemen, 13 (1). pp. 45-52. ISSN 2086-0668

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Abstract

Using different firm size proxies in financial research produces varying empirical results. The purpose of the paper is to find out the most appropriate firm size proxy between total sales and total assets in explaining asymmetric information at each stage of the firm life cycle. Pooled data were obtained as many as 3467 observation units from the annual reports of companies listed on the Indonesia Stock Exchange (IDX) for the 2008-2019 period. In-line functional regression analysis based on dummy percentiles was used to answer research questions. Empirical results have explained that total sales have greater goodness of fit as a proxy for firm size than total assets. The presence of asymmetric information produces debt issues as a signal of poor quality firms. Thus, many previous studies may not be robust and biased.

Item Type: Article
Uncontrolled Keywords: Asymmetric information, firm life-cycle, firm size, total assets, total sales
Subjects: H Social Sciences > HB Economic Theory
Fakultas: Fakultas Ekonomi > Manajemen, S1
Depositing User: dina nurcahyani perpus
Date Deposited: 18 Apr 2022 02:24
Last Modified: 18 Apr 2022 02:24
URI: http://lib.unnes.ac.id/id/eprint/49638

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