Teddy Chandra, Achmad Tavip Junaedi, Evelyn Wijaya and Martha Ng
The purpose of this paper is (1) to determine the factors that significantly influence the capital structure, (2) to determine the factors that significantly influence…
Abstract
Purpose
The purpose of this paper is (1) to determine the factors that significantly influence the capital structure, (2) to determine the factors that significantly influence profitability, (3) to find the factors that significantly influence growth opportunities, (4) to find reciprocal influence between capital structure and profitability and (5) to find reciprocal influence between capital structure and growth opportunity.
Design/methodology/approach
The population of this research is a manufacturing company listed on the Indonesia Stock Exchange during the period of 2010–2016. The number registered in the manufacturing sector is 144 companies. The sampling technique applied is purposive sampling. The fulfillment criteria are companies that have been approved before 2010. Another criterion is that the company is not delisting during the observation period. From that total of population, companies that meet the requirements are 117 companies. This observation was conducted for seven years since 2010–2016, so the center of the analysis of this research was a total of 819. The inferential statistics method used to analyze the research data is generalized structural component analysis (GSCA).
Findings
The results of this study indicate that (1) the factors that influence the capital structure include effective tax rate, financial flexibility, growth, uniqueness, asset Utilization, firm size and tangibility; (2) factors that affect profitability include liquidity, growth, firm age, uniqueness, tangibility, volatility, advertising and asset turnover; (3) growth opportunity have a negative and significant influence on capital structure. This means an increase in growth opportunity can be defined as an increase in depreciation that will not be used as collateral for managers to increase debt. This increase in debt will have an impact on reducing growth opportunities; (4) profitability and capital structure have a two-way causality relationship, which means they influence each other and (5) capital structure and growth opportunities have a negative reciprocal relationship.
Originality/value
The authenticity of the study is implied in the following explanation: The authors try to examine the reciprocal effect of capital structure on profitability and capital structure on growth opportunities and the factors that influence these two endogenous variables that have never been done by previous researchers. This research is motivated by research conducted by (Chathoth and Olsen, 2007; Jian-Shen Chen et al., 2009; Yang et al., 2010) using the structural equation model (SEM). However, this study uses GSCA as a method of research analysis.
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Jian‐Shen Chen, Mei‐Ching Chen, Wen‐Ju Liao and Tsung‐Hsien Chen
The solvency of insurance companies is closely related to the policyholders, and consequently regulators in Taiwan pay considerable attention to this area. Several studies have…
Abstract
Purpose
The solvency of insurance companies is closely related to the policyholders, and consequently regulators in Taiwan pay considerable attention to this area. Several studies have demonstrated a close correlation among capital structure, operational risk and profitability. This study seeks to provide evidence regarding the influence of capital structure and operational risk on profitability of the life insurance industry in Taiwan.
Design/methodology/approach
Structural equation modeling, which involves factor‐analysis and path‐analysis, is used to justify the relationship among capital structure, operational risk and profitability. Adding the macroeconomic latent variable to the model as a control variable demonstrates that the macroeconomic latent variable positively influences capital structure, operational risk and profitability.
Findings
The study leads to four key findings. First, according to the empirical result, the research model has excellent goodness‐of‐fit. That is to say, using multiple financial indices suitably measures the specific financial factors. Second, the capital structure exerts a negative and significant effect on operational risk. Third, there is no reciprocal relationship but a one‐way effect between capital structure and operational risk. Fourth, the operational risk exerts a negative and significant effect on profitability.
Practical implications
The empirical result shows the profitability decreased with the higher equity ratio. Hence, the regulatory organizations must urge insurance companies to effectively diversify their investments and employ risk avoidance strategies. Effective use of hedging and diversifying will help to divide risk and create financial revenue.
Originality/value
The study proposes that the government should loosen investment restrictions and develop other instruments to assist risk‐based capital in checking the financial condition of insurance companies.
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Chieh‐Wen Sheng, Ming‐Jian Shen and Ming‐Chia Chen
The paper research objectives are: to investigate into the classification of special interest tour preferences in terms of their types and to compare whether consumers with…
Abstract
Purpose
The paper research objectives are: to investigate into the classification of special interest tour preferences in terms of their types and to compare whether consumers with different demographic attributes result in discrepancies in special interest tour preferences.
Design/methodology/approach
Those collected questionnaires that had incomplete answers and that had a significant response tendency or were left blank with no answers were eliminated. The required statistical methods are explained thus: this study conducts analysis on special interest tour preferences by factor analysis to distinguish between the categories of special interest tour preferences; this study adopts correlation analysis to examine the ratio scale of the study's demographic variables, including age and education level; this study adopts one‐way ANOVA to examine the variables of categorical or nominal scale, such as gender, marital status, and occupation.
Findings
After collecting the questionnaire data, factor analysis is used to conduct classification of the types and a total of four types emerged: recreation type, nature/ecology type, physical adventure type, historical/artistic activity type. Furthermore, in the verification of the demographic variables of each type preferences: age and nature‐eco type preferences constitute a significant positive correlation, and age has also formed a significant negative correlation with physical adventure type; gender differences result in a significant difference in recreation type preferences and a significant difference in physical adventure type preferences; marital status has a significant variation regarding physical adventure preferences.
Practical implications
Special interest tours are gradually on the rise and the previous literature is still lacking a systematic method for investigative analysis. Accordingly, conducting a systematic categorization of special interest tour preferences and to examining the background of the consumers of each type of special interest tour preference is essential.
Originality/value
The necessity for special interest tours to conform to consumer interests, and the existence of special interests, require that those in the travel industry conduct market segmentation, prior to designing travel itineraries, so as to have an understanding of the target market. Furthermore, the types of special interest tour preference this study provides can offer the basis for discussion of relevant issues for those travel business industry operators in the industry and future researchers.
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Sheng Chieh‐Wen, Ming‐Jian Shen and Ming‐Chia Chen
This research aims to treat voluntary simplicity lifestyle (VSL) as general lifestyle and explore the correlation between VSL and selection preference of special interest tourism…
Abstract
Purpose
This research aims to treat voluntary simplicity lifestyle (VSL) as general lifestyle and explore the correlation between VSL and selection preference of special interest tourism (SIT).
Design/methodology/approach
This research adopts a questionnaire survey. The content of the questionnaire include questions on participants' demographic variables, VSL, and selection preference of SIT. After designing the questionnaire of selection preference of SIT, this research treats the tourists in the Taiwan Guandu bird‐watching area as the targets and distributes the questionnaires. This research adopts systematic sampling for questionnaire distribution.
Findings
The following results are found: a positive correlation between selection preference of SIT and VSL; females are mostly allocated as the recreation and entertainment type people preferring SIT, the educational level of diverse interest type people preferring SIT tend to be higher, and these people have a more significant VSL; people who are the low degree of identification type with voluntary simplicity reveal almost the least scores in terms of all kinds of traveling preference, whereas complete involvement type individuals show a higher degree of preference.
Research limitations/implications
This questionnaire is not exclusive. In other words, the respondents can provide extremely high, medium, or low scores for the preference for any kind of trips. Thus, the respondents' real preference sequence cannot be distinguished. Future studies can modify this questionnaire. The questionnaire of selection preference of SIT designed by this research mainly followed the SIT itineraries promoted on traveling websites and upon certain processes. Thus, this questionnaire content is based on the view of the supply end.
Originality/value
This research follows the suggestions of McKercher and Chan, and after internet searching, the method imitates content analysis to establish a questionnaire with 18 questions with respect to the selection preference of SIT. Through factor analysis, the researchers select four kinds of selection preference of SIT, including traveling preference of recreation and entertainment, natural ecology, physical exploration, and history and art. In addition, this research also uses confirmatory factor analysis to confirm the convergent validity of the VSL questionnaire developed by the authors (2005).
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Yong Liu, Jiang Zhang, Junjie Cui, Changsong Zheng, Yajun Liu and Jian Shen
In armored vehicles integrated transmissions, residual life prediction based on oil spectrum data is crucial for condition monitoring and reliability assessment. This paper aims…
Abstract
Purpose
In armored vehicles integrated transmissions, residual life prediction based on oil spectrum data is crucial for condition monitoring and reliability assessment. This paper aims to use the advantages of real-time and accurate prediction of binary Wiener process, the residual life prediction of clutch is studied.
Design/methodology/approach
First, combined with the wet clutch life test, the indicator elements Cu and Pb and the failure threshold of the residual life prediction of the clutch are extracted through the oil replacement correction of the spectral data of the whole life cycle; second, the correlation characteristics of indicating elements are analyzed by MATLAB Copula function, then the correlation function of residual life will be derived; third, according to the inverse Gaussian principle, the performance degradation mathematical models of the unary and binary Wiener processes of the above two indicator elements are established; finally, the maximum likelihood estimation method is used to estimate the parameters, and the monadic and binary performance degradation mathematical models are used to predict the residual life of the tested clutch.
Findings
By comparing the prediction results with the test results, with the passage of time, 81.25% of the predicted value error of the residual life prediction method based on the binary Wiener process is controlled within 20%, while 56.25% of the predicted value error of the residual life prediction method based on the unitary Wiener process is controlled within 20%. At the same time, the prediction accuracy of the binary prediction model is 2%–16.7% higher than that of the unitary prediction model.
Originality/value
This paper studies the residual life prediction theory of wet clutch, which can develop the theory and method of comprehensive transmission health monitoring, and provide theoretical and technical support for the construction of a reliable health management system for high-speed tracked vehicles.