Factors Affecting the Financial Structure O f Trading Firms In Samarinda

(1)

64

Factors Affecting The Financial Structure o f Trading

Factors Affecting the Financial Structure

O f Trading Firms In Samarinda

R u sm ilaw ati

L e c tu re r o f E co n o m ics, M u la w arm an U n iv e rsity S a m arin d a, In d o n esia

A bstract

One o f the expenditure problems faced by the trading

firm s is the one related to the financial balance. The

financial balance o f a company could be achieved i f the

company did not have to face financial obstacles as a result

o f the imbalance between the available capital and the

required capital.

This research was aimed at investigating the

simultaneously significant effects o f the factors o f asset

structure, sales growth rate profitability and operating

leverage on the financial structure o f the trading firm s in

Samarinda fo r short-term and long-term sources and fo r self

financial sources. It was also intended to fin d out which o f

the dominant factors o f asset structure, sales growth rate,

profitability and operating leverage had the most significant

effect on the financial structure o f the trading firm s o f

Samarinda fo r a short-term, a long-term and self-financial

sources (Networth).

The research result indicated that simultaneously the

factors used in this research had a significant effect on both

the short-term financial sources and self-financial sources.

The most dominant factor which had the most significant

effect on the short-term, long-term and self-financial sources

was the factor o f profitability. In the financial policy making

process o f the trading firms in Samarinda, (here was

tendency towards the packing order behavior. By taking into

consideration the profit factor, the companies would try to

cover their financial problem with their self-financial

sources, particularly with their profit and their retained

earnings. When their self capital source could not cover all

their financial need, they would then consider their asset

Vol. 14, No. 1, August 2006

©

Centre fo r Indonesian Accounting and Management Research

(2)

structure, sales growth rate and their operating leverage in

order to see whether it was still possible fo r the companies

to cover their need by creating debts.

Keywords:

F in an cial stru c tu re , a sse t stru c tu re T ra d in g firm s, sa le s g ro w th rate p ro fita b ility , o p e ra tin g lev e rag e

I. Introduction

.1 B ackground o f the Study

O n e o f th e p ro b le m s o f b u d g e tin g o f the firm s is th e b a la n c e o f financial stru c tu re . T h e b a la n c e can be reach ed if the firm s, a lo n g th e ir o p e ra tio n , do n ot h av e fin a n c ia l p ro b le m s. In d e fin in g th e so u rc e s o f fund, th e firm s use a c o n s e rv a tiv e fin a n c ia l stru c tu re , both th e v e rtica l an d th e h o riz o n tal one (R iy a n to , 1996). T h e first p ro v id e s ratio w h ich sh o u ld reta in e d on the n u m b e r o f a c c o u n t p a y a b le an d th e netvvorth. T h e latte r p ro v id e a lim it o f ratio b e tw e e n th e n u m b e r o f n etw o rth an d th e fix a s se ts p lu s th e reserv e w h ic h m u st be m et w ith th e n e tw o rth , th e fund reta in e d in th e firm.

There a re so m e facto rs in flu e n cin g th e d e te rm in a tio n o f th e financial stru c tu re : (1 ) o rg a n iz a tio n a l g ro w th lev el, (2 ) sa le s sta b ility , (3 ) in d u strial stru c tu re , (4 ) a sse ts stru c tu re , (5 ) m an a g e m e n t a ttitu d e , a n d (6 ) loan- p ro v id e r a ttitu d e .

T ra d in g firm s play a very im p o rta n t role in su p p o rtin g In d o n esian e c o n o m y . In S a m a rin d a , till 2 0 0 0 , it is rec o rd e d 981 tra d in g firm s. O f the n u m b er, 624 tra d in g firm s on g o o d s and se rv ic es, 83 d istrib u to rs , and 274 rea tailers.

T ra d in g firm s w h o se th e c h a ra c te ristic s o f p u rc h a s in g an d re s e llin g g o o d s to m eet th e ir n e e d s o f fund reso u rc e s a lso b o rro w m o n e y from o th e r p arties, b a n k s a n d /o r o th e r fin an cial in stitu tio n s. T h e lo an s th a t th e y get from b an k s a re sh o rt-te rm lo an s a n d /o r lo n g -term loans. T h u s, th e firm s a re req u ired to sp en d th e lo an s so e ffic ie n tly and e ffe c tiv e ly th a t th ey c o u ld g et high value from th e loans. In th is c a se th e firm s are fre q u e n tly fac e d w ith th e p ro b le m s o f fin a n c ia l stru c tu re w h ich m ay be e x p e c te d to b rin g fo rth great p ro fita b ility .

Vol. 14, No. 1 August 2006

©

(3)

1.2 Statement o f the Problems

The problems o f this study is stated as the following:

1. A re th e a s se ts stru c tu re , th e sales g ro w th , p ro fita b ility , an d o p e ra tin g lev e rag e sim u lta n e o u sly a ffe c ts th e fin an cial stru c tu re o f th e tra d in g firm s in S a m a rin d a ?

2. W h a t a re th e d o m in a n t fac to rs a ffe c tin g th e fin a n c ia l stru c tu re o f tra d in g firm s in S a m arin d a?

1.3 O bjectives o f the Study

T h is stu d y is aim e d at:

1. a n a ly z in g th e e ffc c t o f th e a sse ts stru c tu re , th e sa le s g ro w th , p ro fita b ility , an d th e o p e ra tin g lev erag e on th e fin a n c ia l stru c tu re o f the tra d in g firm s in S a m arin d a.

2. lo o k in g into th e d o m in a n t facto rs a ffe c tin g th e fin an cial fac to rs o f the tra d in g firm s in S am arin d a.

2. T heoretical Fram ew ork

2.1 H eny S u lis ty a n in g sih (2 0 0 0 ). She co n d u c te d a re se a rc h on fac to rs a ffe c tin g fund reso u rc e s, such as th e sales g ro w th , reserv es, p ro fita b ility , an d the o p e ra tin g lev erag e. T h e resu lts reveal th at all v a ria b le s used in th e research sig n ific a n tly in flu e n ce th e p o licy o f se le c tin g th e c a p ital stru ctu re.

2.2 A n ja r W ib iso n o (2 0 0 2 ). S he co n d u c te d a research on fac to rs a ffe c tin g the cap ital stru c tu re , su ch as the sales g ro w th , th e a sse ts stru c tu re , o rg a n iz a tio n a l g ro w th , p ro fita b ility an d tax. T h e resu lts reveal th at th o se v a ria b le s in flu en ce th e cap ital stru c tu re o f firm s.

2.3 T h e F in a n cia l S tru ctu re. It is d efin e d as the w ay ho w to sp en d th e assets, and it is stated on th e rig h t sid e o f a b a la n c e sheet. T h e fin an cial stru c tu re refers to th e c o m p a riso n b etw een all fund reso u rc es, such as lo an s (sh o rt-te rm and lo n g -te rm ) and th e n e tw o rth o r eq u ity (W e sto n and C o p e la n d , 1997:19).

2.4 S o m e F a c to rs a n a ly z e d in the R esearch

1. A sse t S tru c tu re . T h e d e ta ils o f a sse ts stru c tu re are c la ssifie d b ased on th e sy ste m o f its liq u id ity (IA I, 1999:91). T h e e sse n c e o f liq u id ity is th e u p p e r line, like cash , the m o st liquid assets. T h e a s se ts stru c tu re is c la s s ifie d into: a) liquid asse ts, b) in v estm e n t, c) fix e d assets, d) in ta n g ib le a sse ts, an d e) m isc e lla n e o u s assets. T h e a sse ts stru c tu re is the d e te rm in a tio n o f th e n u m b e r allo c ate d for each c o m p o n e n t. T h e asset stru c tu re is a ratio b e tw e en liq u id a sse ts an d th e fix e d a sse ts o f th e firm an d th e stru c tu re o f th e assets is sated in th e b a la n c e sheet.

66

Factors Affecting The Financial Structure o f Trading

...

Vol. 14, No. 1 August 2006

©

(4)

2. T h e S a les G ro w th R ate

T h e s a le s g ro w th rate is very im p o rtan t fo r th e su rv iv al o f firm s. If th e sa le s rate is g e ttin g w o rst, th e firm s are g e ttin g to be o u t o f b u sin ess. (M a tz an d U sry, 1998:205). In th e fin an cial c o n te x t, sales m ay be v iew e d from side o f p lan n in g and rea liz a tio n m ea su red based on c u rre n c y . F rom side o f p lan n in g , it reflec ts a ta rg e t w h ic h sh o u ld be rea c h e d by th e firm s.

T h e su rv iv al o f firm s d ep en d on th e ir a b ility in m ee tin g the c o sts w ith retu rn s th ey get. T he g o o d p la n n in g on c o sts and risks is in h ere n t w ith the sales p lan n in g . T h e sales m ay be said as the right tra n s fe r o f g o o d s and se rv ic es to p ay fo r cash o r a c c o u n t rec e iv a b le ( S in a g a a n d W id ja ja n to , 1991:122).

3. T h e P ro fita b ility

P ro fita b ility is th e ab ility o f firm s to g et retu rn s as a resu lt o f e x p e n d itu re s . T h e re are th re e asp ec ts sh o u ld be c o n sid e re d in th is case: th e firm s a b ility , rev e n u e s, and co sts. P ro fitab ility refe rs to th e firm s a b ility in o b ta in in g p ro fit from sales, total asse t, and n e tw o rth . (S arto n o , 2 0 0 0 :9 0 ).

4. D e g re e o f O p e ra tin g L ev erag e (D O L )

W hen th e firm s are on p e rm a n en t o p e ra tio n w ith fix ed c a p ital, th ey are sa id to use lev erag e. W ith o p e ra tin g lev erag e, th e firm s e x p e c t th e sales rate to in c re a se th e p ro fita b ility rate b e fo re tax . M u ltip lie r e ffe c t o f the resu lt o f s p e n d in g th e fix ed o p e ra tio n a l c o sts on p ro fit b e fo re in terest an d tax is c a lled d e g re e o f o p e ra tin g lev e rag e (D O L ) (S a rto n o , 2 0 0 0 :3 4 5 ).

Vol. 14, No. I August 2006

(5)

3. M eth o d o lo g y

3.1 T he C on ceptu al Fram ew ork

The fo llo w in g is the conceptual fram ework o f the study.

68

Factors Affecting The Financial Structure o f Trading

...

3.2 H ypotheses o f the Study

H y p o th e sis 1: T h e stru c tu re assets, the sales g ro w th , th e p ro fita b ility , and the o p e ra tin g le v e ra g e sim u lta n e o u sly a ffe c t th e fin a n c ia l stru c tu re o f the

t r a d i n g f i r m s in S a m a r i n d a .

H y p o th e sis 2: P ro fitab ility d o m in a n tly affe c ts th e fin a n c ia l s tru c tu re o f th e

t r a d i n g f i r m s in S a m a r i n d a .

3.3 Population and Sam pling

T h e p o p u la tio n o f th is stu d y is th e tra d in g firm s lo cated in S am arin d a. T he n u m b e r o f th e sa m p le is 15 tra d in g firm s fo rm u la ted w ith th e p u rp o siv e

Vol. 14, No. 1 August 2006

©

(6)

sampling technique. The criteria o f the sample are those o f 5 till 7 years over operation and those whose records on business track.

T h is re se a rc h w a s c o n d u c te d fo r five y e a rs, from 1997 until 2 0 0 1 , and w as d o n e w ith th e te c h n iq u e o f g a th e rin g d a ta o f e a ch v a ria b le as th e base o f im p le m e n ta tio n o f th e in feren tial statistical a n a ly sis in th e fo rm o f m u ltip le reg re ssio n e q u a tio n . T h e m odel o f in feren tial a n a ly sis is u sed to look into re la tio n s h ip o f in d e p e n d e n t v a ria b le s. In te s tin g th e h y p o th e se s, th e rese a rc h e r e m p lo y e d m u ltip le lin e a r reg re ssio n a n a ly sis w ith th e p ro g ra m o f S P S S v ersio n

10.05 fo r W in M e.

4. R esults

4.1 D escriptive A nalysis

1. T h e G ro w th o f A sset S tru ctu re (X 1)

T h e ratio o f the g ro w th o f asset stru c tu re is 7.3 2% . the h ig h est g ro w th o f asse t stru c tu re is reach ed by PT BJ a m o u n tin g to 7 0 .9 9 % in 1 9 9 9 -2 0 0 0 . T h e a v e ra g e g ro w th o f a sse t s tru c tu re o f th e low est is re a c h e d by PT BJ (-3 0 .4 0 % in 2 0 0 0 -2 0 0 1 ), and (-2 4 .8 8 % in 1997

1998), by C V B P R (-1 7 .0 1 % in 1 997-1998).

2. T h e S a les G ro w th R ate (X 2 )

T h e a v e ra g e ratio o f the sales g ro w th o f 15 firm s in 1997-2001 is 6 .3 5 % . T h e h ig h est sales g ro w th is rea c h e d by P T JR (6 0 .7 1 % in 1 9 9 9 -2 0 0 0 ). 19.5 6% is reach ed by U D SD . T h e lo w e st sa le s g ro w th is re a c h e d by P T BJ (-2 2 .5 0 % in 1 9 9 9 -2 0 0 0 ) an d by P T SL (-1 8 .5 8 % in

1 9 9 7 -1 9 9 8 ).

3. T h e P ro fita b ility G ro w th R ate (X 3 )

T h e a v e ra g e ratio o f p ro fita b ility g ro w th in 1997-2001 is 4 0 .0 9 % .T h e h ig h est rate is reach ed by PT B P R (5 3 3 .4 4 % in 1997

1998), by C V M W (4 8 0 .6 0 % in 1 999-2000). T h e lo w e st rate is reach ed by PT BJ (-7 7 .1 5 % in 1997-1 9 9 8 ) an d by C V RU (-5 8 .3 7 % in 1998

1999).

4. T h e G ro w th o f O p e ra tin g L e v e ra g e (X 4 )

T h e a v e ra g e o f th e o p e ra tin g lev e rag e g ro w th in 1997-2001 is 2 0 .8 9 % . T h e h ig h e st rate is reach ed by P T B P R (4 0 4 .1 8 % in 1997

1998) an d by U D SD (2 2 .3 4 % in 1 9 98-1999). T h e lo w est rate is re a c h e d by PT BJ (4 5 .9 3 % in 2 0 0 0 -2 0 0 1 ) a n d by C V B P R (-4 2 .3 4 % in

1 9 9 8 -1 9 9 9 ).

5. T h e G ro w th o f F in an cial S tru c tu re (Y )

a) T h e g ro w th o f S h o rt-term fund re s o u rc e s ( Y l ) . T h e a v erag e ratio o f th e g ro w th in 1997-2001 is 2 8 .9 4 % . T h e h ig h e st rate is reach ed

Vol. 14, No. 1 August 2006

©

(7)

70

Factors Affecting The Financial Structure o f Trading

by C V B P R (3 2 8 .5 4 % in 199 8 -1 9 9 9 ), by C V M W (1 6 1 % in 1997 1998). T h e lo w e st rate is reach ed by U D S D (6 7 .8 7 % in 1 9 99-2000) a n d by P T DJ (-5 6 .5 4 % in 1998-1999). b) T h e g ro w th o f L o n g -term F und R e so u rc e s (Y 2 ). T h e a v e ra g e o f ratio o f th e g ro w th is - 17 .2 7 % in 1997 -2 0 0 1 . T h e h ig h est rate is reach ed by PT B JR is 4 2 .0 8 % in 1999 2 0 0 0 , 2 9 .6 2 % in 1998-1999. T he low est rate is rea c h e d by T o k o IP ( 7 5 .1 8 % in 1 9 9 9 -2 0 0 0 ) an d by U D S D (-6 8 .5 7 % in 1 998-1999).

c ) T h e G ro w th o f N e tw o rth (Y 3 ). T h e a v e ra g e ratio o f the g row tli in 1997-2001 is 8.67% . T h e h ig h est rate is re a c h e d by P T B JR (5 2 .3 3 % in 1 9 9 7 -1 9 9 8 ) and by C V RU (5 3 .8 7 % in 19 9 9 -2 0 0 0 ). T h e lo w est rate is rea c h e d by C V K L S (-3 2 .7 3 % in 1 9 9 8 -1 9 9 9 ) and by CV RU (-2 4 .1 8 % in 1997-1998).

4.2 I n f e r e n tia l S ta tis tic a l A n a ly s is

T h is a n a ly s is is aim ed at g e ttin g th e c o e ffic ie n t a n d reg re ssio n w ith the e q u a lity o f m u ltip le lin ier reg re ssio n .

1. T h e sh o rt-te rm fu n d in g reso u rce.

O n th e level o f sig n ific a n ce 5% , it is fo u n d th e sc o re o f X I = 0 .0 0 1 , X 2 -- 0 .0 0 3 , X3 = 0 .0 0 0 , an d X4 = 0.3 6 8 . T h re e o f th o se sco res ( X I , X2. an d X 3) are less than 5% (0 .0 5 ). m ea n s th at th e in flu e n ce is s ig n ific a n t. T he sco re o f X4 is g re a te r th an 5% , m e a n s th at th e in flu en ce is not sig n ific a n t. A lso, it is found th at th e sco re R is 0 .8 9 5 , m ean s th at th e c o rre la tio n b etw een th e d e p e n d en t v a ria b le s an d th e in d ep e n d e n t v a ria b le s is stro n g .

2. T h e sh o rt-te rm o f fu n d in g reso u rce

O n th e level o f sig n ific a n ce 5% , it is fo u n d th a t th e sco re o f X I = 0 .6 9 , X 2 = 0 .3 8 2 , X3 = 0 .8 9 2 , an d X4 = 0 .2 0 4 . T h o se sc o re s are g re a te r th an 5% (0 .0 5 ), m ean s th at th e in flu e n ce is n o t sig n ific a n t. A lso, it is fo u n d th at th e sc o re R is 0 .5 8 2 , m ea n s th a t th e c o rre la tio n b etw een th e d e p e n d e n t v a ria b le s and th e in d ep e n d e n t v a ria b le s is n ot to o stro n g . 3. T h e n e tw o rth fu n d in g reso u rc e

O n th e level o f sig n ific a n ce 5% , it is fo u n d th a t th e sc o re o f X 1 = 0 .6 0 8 , X2 = 0 .9 5 0 , X3 = 0 .0 2 1 , an d X4 = 0 .1 6 4 . T h re e o f th o se sc o re s ( X I , X 2, an d X 4) are g re a te r th an 5% (0 .0 5 ), m ea n s th a t th e in flu e n ce is n ot sig n ific a n t. T h e sco re o f X3 is less th an 5% , m ea n s th at the in flu e n ce is sig n ific a n t. A lso, it is found th at th e sc o re R is 0 .7 8 4 , m ea n s th at th e c o rre la tio n b etw een th e d e p e n d en t v a ria b le s and the in d ep e n d e n t v a ria b le s is strong.

Vol. 14, No. I August 2006

©

Centre fo r Indonesian Accounting and M anagement Research

(8)

5. Discussions

T h e re s u lts o f th is stu d y rev e a l th a t th e tra d in g firm s in S a m a rin d a w h ic h h av e a s se t s tru c tu re , s a le s g ro w th rate , p ro fita b ility , a n d o p e ra tin g le v e ra g e ten d to req u ire fu n d re s o u rc e s fro m th e sh o rt-te rm lo an s an d th e n e tw o rth . It m ea n s th a t in m a k in g d e c is io n on fu n d in g , th e tra d in g firm s in S a m a rin d a te n d to b eh av e “ p a c k in g o rd e r” , by c o n s id e rin g the p ro fit facto rs, th en th e firm s d o w ith the n e tw o rth . I f it is n o t su fficie n t, based on the c o n s id e ra tio n o f a sse t stru c tu re fac to r, sa le s g ro w th rate, o p e ra tin g lev erag e, th e tra d in g firm s still p o ssib ly m eet th e ir n eed o f fu n d from th e sh o rt-te rm loans.

T h e tra d in g firm s in S a m arin d a w h ich h av e a sse t stru c tu re ten d to re q u ire th e ir fu n d s from th e sh o rt-term lo an s w h ich h av e p o s itiv e rela tio n s. T h e lo n g -term lo an s h av e n e g a tiv e rela tio n s w ith a sse t s tru c tu re , in d ic a tin g th at th e re is a te n d e n c y w h e n th e a sse t stru c tu re in crease. T h e firm s w ill m in im iz e th e lo n g -term lo a n s to a v o id th e risk o f b e in g out o f b u sin e ss.

T h e m e a s u re o f a sse t stru c tu re m ay be d o n e by u s in g to tal liq u id asset and to ta l firm a sse t b ased on c o n sid e ra tio n o f th e g ro w th o f firm a s se t stru c tu re b etw e en 7 0 .1 8 % - 8 4 .5 1 % . T h e in crease o f a sse t stru c tu re o f th e tra d in g firm s in S a m a rin d a in d ic a te s th a t th e tra d in g firm s a re g ro w in g w ell. I f it is rela te d to the g re a te r n u m b e r o f to tal assets, th e fund req u ired fo r o p e ra tio n ten d to in crease as w ell. It m ea n s th at th ere is a ten d e n c y o f u sin g loans fo r d a ily o p e ra tio n s. T h u s, th e a sse t stru c tu re o f th e firm s sig n ific a n tly a ffe c ts on fin a n c ia l stru c tu re . Such p o lic y is d a n g e ro u s if it is a p p lie d in such w o rse e c o n o m ic c o n d itio n b ecau se th e fixed co st is g e ttin g in cre ase d , in tu rn , it m ak es th e firm s be in se rio u s fix, ev en it tu rn s th em to go b a n k ru p t.

T h e re su lts o f th is stu d y rev eal that th e tra d in g firm s w ith h ig h g ro w th rate p o ssib ly tak e o v e r th e use o f eq u ity w ith loans. T h e tra d in g firm s w ith high g ro w th rate d o n o t p o ssib ly ow n su fficie n t internal fu n d fo r th e ir o p e ra tio n .

T h e m e a su re o f sa le s g ro w th rate m ay be u n d e rta k e n by u sin g sa le s g ro w th ratio o f th e c u rre n t y e a r a n d th e p re v io u s y ear. It m ea n s th a t th e sales g ro w th b e c o m e s not stab le m ak in g m an a g e m e n t d iffic u lt in d e s ig n in g and p la n n in g fin a n c ia l a sp ec ts b e c au se th e firm s d o n o t g et g u a ra n te e o f the p o ssib ly fin a n c ia l p ro b le m s. It is g e ttin g w o rse if th e o p e ra tio n is fu n d ed w ith loans. T h e firm s had b e tte r retain th e u n certain n et in co m e a fte r tax, and m in im iz e th e fix ed co sts, such as lo an -in terest. It is e x p e c te d th a t th e fin an cial risk can be m in im iz ed .

T h e tra d in g firm s in S a m arin d a w h ich h av e g o o d p ro fita b ility rate tend to b e h a v e “ p a c k in g o rd e r” in d e fin in g fu n d in g reso u rc e p o lic y w ith th e risk rate, reta in e d e a rn in g s, d e b ts, and o w n e rs ’ equity.

R e la te d to th e effe c t o f the v a ria b le s in th is stu d y , th e fin d in g s reveal th at th e stre n g th o f th e e ffe c t o f in d ep e n d e n t v a ria b le s on th e d e p e n d en t v a ria b le s d e p e n d s on the rate o f reg ressio n c o e ffic ie n t o f in d ep e n d e n t v a ria b le s

Vol. 14, No. 1 August 2006

©

(9)

o f each . T h e m o d el o f th e e s tim a to r o f re g re ssio n o f fin a n c ia l stru c tu re c o n s is tin g o f th e sh o rt-te rm fu n d in g reso u rc e an d th e n e tw o rth c o u ld b e u sed as th e c o m p a rin g o b je c ts in e s tim a tin g fin an cial stru c tu re in th e tra d in g firm s in S a m a rin d a fo r p a rtic u la r length o f tim e, i f th e a sse t stru c tu re , th e sa le s g ro w th rate, th e p ro fita b ility rate, and th e o p e ra tin g lev e rag e is k n o w n .

T h o se fin a n c ia l stru c tu re s are not th e o p tim al o n es, b u t th o se a re th e co m m o n o n e s h a p p e n ed in th e tra d in g firm s in S am arin d a.

T h is stu d y is d e sig n e d to look into h o w th e fac to rs o f a sse t stru c tu re , sales g ro w th rate, p ro fita b ility , an d o p e ra tin g lev e rag e a ffe c t th e d e c isio n m ak in g fo r fin a n c ia l stru c tu re o f th e tra d in g firm s in S a m arin d a. By u n d e rs ta n d in g th e m o d el o f th e e stim a to r re g re ssio n e q u ity o f fin an cial stru c tu re , su ch as th e sh o rt-te rm fu n d in g reso u rc e, th e lo n g -term fu n d in g reso u rc e, and o w n e d n e tw o rth , th e d e c isio n m ak ers o f th e tra d in g firm s in S a m a rin d a are e x p e c te d to be a b le to e a sily a n a ly z e th e d e c isio n th ey m ad e re g a rd in g w ith s p e n d in g th e fu n d s n eed ed . It is n e c e ssa ry b e c a u se th e fin an cial b a la n c e o f th e firm s can be reach ed if th ey d o n ot g e t s e rio u s p ro b le m s o f fin a n c in g d u rin g th e o p e ra tio n .

T h is stu d y a lso d isc u sse s ab o u t the m ost d o m in a n t fac to rs a ffe c tin g the fin an cial s tru c tu re w h ich is im p o rta n t in e lim in a tin g th e d o u b tfu ln e ss o f d e c isio n m ak in g on fu n d in g for th e firm s o p e ra tio n . T h e e ffe c tiv e p o licy o f g e ttin g fu n d re s o u rc e s and sp e n d in g it is very im p o rta n t to g et a m ax im u m p ro fita b ility rate. S u ch p o licy in clu d es w h e th e r th e in v estm e n t is fu n d ed w ith o w n e d n e tw o rth , th e sh o rt-te rm o r th e long-term lo an s o r th e c o m b in a tio n o f th em . G e n e ra lly , th e tra d in g firm s in S a m arin d a p e rfo rm s w ith th e av e ra g e fin a n c ia l stru c tu re rate o f 10.1 8% . It m ea n s th a t th e d a ily o p e ra tio n is m o stly fu n d ed w ith lo an s fro m fin an cial in stitu tio n s, th e sh o rt-te rm a n d /o r th e lo n g term o n es.

6. Conclusion

5.1 T h e in d ep e n d e n t v ariab les: th e asset stru c tu re , th e sa le s g ro w th rates, th e p ro fita b ility , and th e o p e ra tin g lev e rag e s ig n ific a n tly a ffe c ts the fin a n c ia l s tru c tu re — th e sh o rt-term fu n d in g re so u rc e and n etw o rth re so u rc es.

5.2 T h e m o st d o m in a n t facto r w h ich had th e m o st sig n ific a n t e ffe c t on the sh o rt-te rm , lo n g -term an d se lf-fin an c ial so u rc e s (n e tw o rth ) w a s th e fa c to r o f p ro fita b ility . T h e h ig h e r th e p ro fita b ility rate, th e h ig h e r the sh o rt-te rm fu n d in g reso u rc e ( Y l) . T h e resu lt o f sta tistic a l c o m p u ta tio n fo r p ro fita b ility rate is 0.8 5 8 . T h e o p e ra tin g lev e rag e is th e m o st d o m in a n t in flu e n ce on the lo n g -term fu n d in g re so u rc e . T h e re s u lto f sta tistic a l c o m p u ta tio n fo r th e o p e ra tin g lev erag e rate is 0 .3 8 9 . T h e rate 72

...

Vol. 14, No. 1 August 2006

©

Centre fo r Indonesian Accounting and M anagement Research

(10)

o f fu n d in g re s o u rc e o f n e tw o rth is 0 .6 4 5 . It m e a n s th a t it m a in ta in s th e n e tw o rth p o sitio n .

5.3 T h e c o e ffic ie n t o f A d ju ste d R sq u a re b e tw e en in d e p e n d e n t v a ria b le s a n d d e p e n d e n t v a ria b le s o f th e sh o rt-te rm fu n d in g re s o u rc e is 0.7 2 1 . T h e a d ju ste d R sq u are b etw een in d ep e n d e n t v a ria b le s an d d e p e n d e n t v a ria b le s o f th e n e tw o rth fu n d in g reso u rc e is 0 .4 6 0 .

5.4 T h e tra d in g firm s in S a m a rin d a ten d to b e h a v e “ p a c k in g o rd e r” in th e d e c isio n m ak in g . B ased on th e p ro fit c o n s id e ra tio n , th e firm s m eet th e n eed o f fu n d from th e n e tw o rth . I f th e n e tw o rth is n o t su ffic ie n t, th e firm s w ill m eet th e need o f fund from th e sh o rt-te rm lo an s b ased on the c o n s id e ra tio n o f so m e facto rs, such as a sse t stru c tu re , sa le s g ro w th rate, an d o p e ra tin g lev erag e. T h e n eed o f fund from th e lo n g -term lo an s is n o t c o n trib u te d yet.

7. S u g g e s tio n s

It is su g g e ste d that:

6.1 F o r th e sh o rt-te rm lo an s ( Y 1), th e firm s sh o u ld reta in th e fin a n c ia l s tru c tu re th ey h av e fo r p ro fita b ility , and for th e lo n g -term fu n d in g re so u rc e (2 ), th ey sh o u ld c o n sid e r th e fin a n c ia l risk a n d k e e p th e firm s c re d ib ility .

6.2 T h e fu rth e r re s e a rc h e s d isc u ss a b o u t so m e v a ria b le s w h ic h a re not in v o lv e d in th is stu d y , su ch a s liq u id ity , c a sh flo w , th e size o f firm s, th e m a n a g e m e n t a ttitu d e , an d th e d e g re e o f fin a n c ia l lev e rag e (D F L ) in d e te rm in in g th e firm s ’ reso u rc e o f fund.

Vol. 14, No. 1 August 2006

©

(11)

74

References

A rifin Z a in u l, 1992, F a k to r-F a k to r y a n g M e m p e n g a ru h i S tru k tu r M o d al dan P e n g aru h S tru k tu r M o d al te rh a d a p B iay a M o d al P a d a B an k D esa di K re sid e n a n B o jo n e g o ro , T e sis S2, U n iv e rsita s A irla n g g a , P a sc a s a rja n a , IJnair.

A ssauri S o fy an , 1987, M an ajem en P em asaran : D asar K o n se p dan S trateg i, C'ciakan P ertam a. P cn erb it C V . R ajaw ali. Jak arta.

B righam E ug en e I . and G a p e n sk i, Louis C., 1996, In te rm e d ia te F inancial M a n a g e m e n t, Fifth L dition, 1 lie D ryden Fress, F lorid U SA .

B righam F u g e n e F. 1983, F u n d am en tal o f F in an cial M a n a g e m e n t, H u ltsa u d e rs In te rn atio n a l E d itio n , Jap an .

By less. Em. A nd D iltz, D J., 1994, S e c u ritie s O fferin g s an d C a p ita l S tru ctu re T h eo ry Jo u rn a l o f B u sin e ss F in an ce & A c c o u n tin g , 21, 71-91.

B re a k R ich ard , S te w a rt M yers, 1984, P rin cip les o f C o rp o ra te F in a n ce . S eco n d E d itio n , M c G raw -H ill, Inc.

C 'am psey B .J., E u g en e F B rig h am , 1985, In tro d u c tio n s to F inancial M a n a g e m e n t. T h e D ry d en P ress, U nited S tates o f A m e ric a.

D avid W C ra v e n s. 1988, M an ajem en S tra te g is dan K e b ija k a n P eru sah aan , T e rje m a h a n , E disi k e tig a , P en erb it E rlan g g a, Ja k arta.

D om ian D ale L. J o h n G ilste r, D avid A, L o u to n , 1996, E x p e c te d In flatio n , In te rest R ate an d S to ck R etu rn s, T h e F in an cial R e v ie w V o l. 31, N o.4 (N o v e m b e r).

Ferr> M ich ael G ., W e sle y H. Jo n es, 1979, D e te rm in a n ts o f F in an cial S tructure: A N e w M e th o d o lo g ic a l A p p ro ach , T h e Jo u rn a l o f F in a n ce , V ol. X X X IV , N o .3.

G a rriso n , R ay H „ 1985, M an ag erial A c c o u n tin g B u sin e ss P u b lic a tio n Inc., T ex as.

Uadi W ijav a dan R iv a 'i W ira sasm ita , 1989, M an aje m e n D a n a B an k , C e ta k an P ertam a, P e n e rb it C V P io n ir Jay a, B andung.

Vol. 14, No. 1 August 2006

©

(12)

H arry S im o n s, 1972, In te rm e d ia te A c c o u n tin g , F ifth e d itio n , N e w R o ch elle, N e w Y o rk , S o u th W e ste rn P u b lish in g C o.

H u sn a n , S u ad , 1984, M a n aje m e n K eu an g an : T eori d an P e n e ra p a n (K e p u tu sa n J a n g k a P a n ja n g ), B P F E , Y o g y a k a rta .

Ik atan A k im tan In d o n esia , 1999, S ta n d ar A k u n ta n si K e u a n g a n , S a le m b a E m pat, Ja k arta.

K a rta d in ata A b as, 1991, D a sa r-D a sa r P e rh itu n g an d alam K e p u tu sa n K eu an g an , C e ta k a n K een am . P I' B in a A k sara, Jak arta.

K erlin g er, Fred N ., 1996, A z a s-A z as P en elitian B e h a v io ra l, P e n e rje m a h L.R. S im a tu p a n g , G a d ja h M ada U n iv ersity P ress, Y o g y a k a rta .

K lien , D aniel P., B rian B elt. 1984. S u stain a b le G ro w th and C h o ic e o f F in a n cin g : A T e st o f th e P a ck in g O rd e r H y p o th e sis, T h e Jo u rn a l o f F in a n ce V o l. 3, 156, 1,2 (S p rin g ).

L o ren tz, T o n y , 1995, T h e V e n tu re C ap ital T o d a y , C a m b rid g e , W o o d h e ad , F u lk er.

M artin Jo h n D .J., W illiam P atty , A rth u r J. K eo w n , D avid F. S c o o t Jr., 1991, B asic F in a n cia l M a n ag e m en t, 5th E d itio n , P re n tic e H all In te rn atio n a l, Inc., U n ited S ta te s o f A m e ric a.

M a tz -U sry , 1988, A k u n ta n si B iaya: P e ren c a n a an dan P e n g e n d a lian , d ite rje m a h k a n o leh W ib o w o , C e ta k a n k e d u a , P e n e rb it E rlan g g a, Ja k arta.

M u ljo n o , teg u h P u d jo , 1990, A n a lisis L ap o ran K eu a n g a n u n tu k P erb an k an , C e ta k a n K etig a, P e n e rb it D jam b atan . Jak arta.

R iy an to , B a m b a n g , 1996, D a sa r-D a sa r P e m b ela n ja a n , B P U G M , Y o g y a k a rta .

S a lad in , 1993, F a lsa fa h O p tim al S tru ctu re M odal D an a M a k sim u m k a n R M S se rta F a k to r-F a k tro r y a n g M e m p e n g a ru h in y a , T e sis S2, U n iv e rsita s In d o n e sia , P a sc a sa rja n a UI.

S a rto n o , A g u s R., 2 0 0 0 , M an aje m e n K eu an g an , B P F E Y o g y a k a rta .

Vol. 14. No. 1 August 2006

©

(13)

76

S i n u n g a n M u e h d a r y a h , 1 9 9 0 , M a n a g e m e n t D a n a B a n k , P T R i n e k a C i p t a , J a k a r t a .

S i n g a r i m b u n . M a s r i d a n S o f l a n E f f e n d i , 1 9 8 6 , M e t o d e P e n e l i t i a n S u r v e y , L P 3 E S , M e d i a P r a t a m a , J a k a r t a .

T j a h v o n o , A c h m a d d a n M u h a m m a d F a c h r i H u s i e n , 1 9 8 9 , P e r p a j a k a n , E d i s i ' K e d u a . U P P - A M K . Y K P N . Y o g y a k a r t a .

V a n H o r n e C . J a m e s . 1 9 8 9 , F u n d a m e n t a l o f F i n a n c i a l M a n a g e m e n t , E n g l e w o o d C l i f f s , P r e n t i c e H a l l I n t e r n a t i o n a l I n c . , L o n d o n .

V a n H o r n e C . J a m e s . 1 9 8 3 , F i n a n c i a l M a n a g e m e n t a n d P o l i c y , S i x t h E d i t i o n , P r e n t i c e H a l l , I n c . . U n i t e d S t a t e s o f A m e r i c a .

W e s t o n J. F r e d & T h o m a s E. C a p e l a n d , 1 9 9 7 , M a n a j e m e n K e u a n g a n , B i n a r u p a A k s a r a , J a k a r t a .

--- . 1 9 9 2 , S t a t i s t i k a . T e o r i d a n A p l i a k s i . J i l i d II, E r l a n g g a , J a k a r t a .

W i b i s o n o . A n j a r . P e n g a r u h B e b e r a p a F a k t o r t e r h a d a p S t r u k t u r M o d a l P e r u s a h a a n D a g a n g d i B a l i k p a p a n , U n i \ e r s i t a s M u l a w a r m a n . T e s i s S 2 .

Vol. 14, No. 1 August 2006