The Effect of Business Strategy, Managerial Ability, Multiple Large Shareholders, and Earnings Management on Investment Efficiency

Wilna Sopacua, Elisabeth Andra and Butar Butar, Sansaloni The Effect of Business Strategy, Managerial Ability, Multiple Large Shareholders, and Earnings Management on Investment Efficiency. Jurnal Akuntansi dan Bisnis. ISSN 1412-775X

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Abstract

Companies often withhold or reject projects that generate net present value. As a result, investment decisions are not optimal and lead to lower investment efficiency. This study examines the effect of business strategy, managerial ability, multiple large shareholders, and earnings management on investment efficiency. The sample was selected from companies listed on the Indonesia Stock Exchange for 2019-2021. Financial and insurance industry companies were excluded because they have different accrual characteristics. Several control variables are added to the regression model. The results show that business strategy is associated with investment efficiency. In contrast, managerial ability, multiple large shareholders, and earnings management have no effects on investment efficiency. As for control variables, operating cash flow, debt-to-equity ratio, firm size, and return on assets are associated with investment efficiency. Keywords: business strategy, earnings management, investment efficiency, managerial ability, multiple large shareholders.

Item Type:	Article
Subjects:	600 Technology (Applied sciences) > 650 Management > 658 Management > Cost Management
Divisions:	Faculty of Economics and Business > Department of Accounting
Depositing User:	Ms Aloysius Juardi
Date Deposited:	26 Jul 2023 07:27
Last Modified:	26 Jul 2023 07:27
URI:	http://repository.unika.ac.id/id/eprint/32225

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