ALTERNATIVE FUNDING SOLUTIONS FOR LISTED COMPANIES

N. Angga Putera Kuswardhana; Ahmad Ilham Arwani

Authors

N. Angga Putera Kuswardhana Department Management Technology
Ahmad Ilham Arwani School Interdisciplinary ITS Management and Technology

Keywords:

alternative public company financing, right issue, corporate bonds, asset-based financing

Abstract

The Indonesian economy is currently quite good with a strong foundation These conditions make Indonesia look very attractive to investors, also supported by the results of Indonesia's ranking by Standard and Poor's (S&P) in 2023, which shows that Indonesia is able to maintain its BBB rating with a stable outlook. This stimulates market conditions, which is shown by the increase in performance and development of companies in Indonesia, especially those that have been listed on the Indonesian stock exchange. However, in its development efforts, even though it has gone public, companies often face challenges in meeting financial needs for continued growth, expansion and innovation. So this research aims to explore alternative sources of financing that can be used by listed companies company for the purpose of company growth and development, as well as factors that influence the selection of alternative funding sources. In order to do this, this research uses literature research methods review using the PRISMA approach. The journals and books reviewed are in the range of 2017 – 2022. The results of the review show that the types of alternative financing that are widely used are: share issuance, corporate bonds, and asset-based financing. Meanwhile, the factors that need to be considered in the selection are: risk, market conditions, environmental issues, maximization of internal financing sources, investor expectations of returns, and business operations

Downloads

Download data is not yet available.

References

E. Haryono, “S&P Mempertahankan Peringkat Republik Indonesia Pada BBB Dengan Outlook Stabil.,” 2023. https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2517823.aspx

D. A. D. Nasution, E. Erlina, and I. Muda, “Dampak pandemi Covid-19 terhadap perekonomian Indonesia,” J. benefita, vol. 5, no. 2, pp. 212–224, 2020.

S. Olivia, J. Gibson, and R. an Nasrudin, “Indonesia in the Time of Covid-19,” Bull. Indones. Econ. Stud., vol. 56, no. 2, pp. 143–174, 2020.

J. H. V. Purba, R. Fathiah, and S. Steven, “The impact of Covid-19 pandemic on the tourism sector in Indonesia,” Ris. J. Apl. Ekon. Akunt. dan Bisnis, vol. 3, no. 1, pp. 389–401, 2021.

N. Atikah, A. Syafi’i, U. E. Rohimi, and P. Rani, “Islamic Economic Position as a Breakfast to Reducing Inflation,” J. Multidisiplin Madani, vol. 3, no. 1, pp. 48–54, 2023.

K. K. R. Indonesia, “Pemulihan Perekonomian Indonesia Setelah Kontraksi Akibat Pandemi Covid-19,” Yenni Ratna Pratiwi. Last Modif., 2022.

J. Abbas and M. Sağsan, “Impact of knowledge management practices on green innovation and corporate sustainable development: A structural analysis,” J. Clean. Prod., vol. 229, pp. 611–620, 2019.

J. He and X. Tian, “Finance and corporate innovation: A survey,” Asia‐Pacific J. Financ. Stud., vol. 47, no. 2, pp. 165–212, 2018.

S. Dutta, B. Lanvin, and S. Wunsch-Vincent, Global innovation index 2020. Johnson Cornell University, 2020.

W. T. Allen, “Our schizophrenic conception of the business corporation,” in Corporate Governance, Gower, 2017, pp. 79–99.

K. Jackowicz, O. Kowalewski, Ł. Kozłowski, and P. Roszkowska, “Issuing bonds, shares or staying private? Determinants of going public in an emerging economy,” Post-Communist Econ., vol. 29, no. 1, pp. 1–26, 2017.

N. Kania, R. Kartikasari, and E. Djukardi, “Penerbitan Saham Bank Bumd Terbuka Tanpa Hak Memesan Efek Terlebih Dahulu Dihubungkan Dengan Fungsi Pasar Modal Sebagai Alternatif Pembiayaan Perusahaan Dan Investasi,” J. Poros Huk. Padjadjaran, vol. 2, no. 1, pp. 1–20, 2020.

S. Johan, “Definisi Perseroan Terbuka atau Publik Menurut Peraturan Perundang-undangan Indonesia,” J. Mercat., vol. 14, no. 1, pp. 38–45, 2021.

A. R. Hakim, A. S. Wijaya, A. Syafi’i, and U. E. Rohimi, “Analysis Of Factors Affecting Competitive Advantage In Business Management,” Riwayat Educ. J. Hist. Humanit., vol. 6, no. 3, pp. 1958–1964, 2023.

A. Wijaya and W. P. Ananta, IPO, Right Issue dan Penawaran Umum Obligasi. Sinar Grafika, 2022.

S. M. B. Deni Sunaryo, Manajemen investasi dan portofolio. Penerbit Qiara Media, 2021.

S. E. Destina Paningrum, Buku referensi investasi pasar modal. Lembaga Chakra Brahmana Lentera, 2022.

R. A. Brealey, S. C. Myers, and F. Allen, “Principles of corporate finance 10 th edition McGraw-Hill.” New York NY USA, 2011.

Y. Alan and V. Gaur, “Operational investment and capital structure under asset-based lending,” Manuf. Serv. Oper. Manag., vol. 20, no. 4, pp. 637–654, 2018.

S. Bonini and V. Capizzi, “The role of venture capital in the emerging entrepreneurial finance ecosystem: future threats and opportunities,” Ventur. Cap., vol. 21, no. 2–3, pp. 137–175, 2019.

M. Islam, A. Fremeth, and A. Marcus, “Signaling by early stage startups: US government research grants and venture capital funding,” J. Bus. Ventur., vol. 33, no. 1, pp. 35–51, 2018.

J. Coakley and A. Lazos, “New developments in equity crowdfunding: A review,” Rev. Corp. Financ., vol. 1, no. 3–4, pp. 341–405, 2021.

K. Mochkabadi and C. K. Volkmann, “Equity crowdfunding: a systematic review of the literature,” Small Bus. Econ., vol. 54, pp. 75–118, 2020.

A. Liberati et al., “The PRISMA statement for reporting systematic reviews and meta-analyses of studies that evaluate health care interventions: explanation and elaboration,” Ann. Intern. Med., vol. 151, no. 4, p. W-65, 2009.

D. Moher, A. Liberati, J. Tetzlaff, D. G. Altman, and P. Group*, “Preferred reporting items for systematic reviews and meta-analyses: the PRISMA statement,” Ann. Intern. Med., vol. 151, no. 4, pp. 264–269, 2009.

T. Pertiwi, “Corporate Funding Alternatives to Support Business Growth: Case Study at PT Berlian Jasa Terminal Indonesia,” in Journal of International Conference Proceedings (JICP), 2019, vol. 2, no. 3, pp. 248–257.

T. D. Huynh and Y. Xia, “Climate change news risk and corporate bond returns,” J. Financ. Quant. Anal., vol. 56, no. 6, pp. 1985–2009, 2021.

D. Megananda, E. Endri, F. Oemar, and A. Husna, “Determinants of corporate bond yield: Empirical evidence from Indonesia,” J. Asian Financ. Econ. Bus., vol. 8, no. 3, pp. 1135–1142, 2020.

S. Wijayanto, Strategi Jitu Investasi Obligasi Korporasi. Elex Media Komputindo, 2015.