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The New Decomposition Asset Growth Effect an Empirical Evidence of Indonesia

WAHYUDI, Sugeng (2017) The New Decomposition Asset Growth Effect an Empirical Evidence of Indonesia. Journal of Applied Economic Sciences, XII (4). pp. 977-984.

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Abstract

This paper provides new evidence for a causal effect of asset growth on stock returns by using decomposition method. The
sample used in this research is non-financial manufacturing firms listed in Indonesia Stock Exchange (IDX) in the year of
2010 - 2015. The asset growth testing was done by conducting regression analysis. The paper results were indicated by
using decomposition method for a causal effect of asset growth, book-to-market, and firm size on stock return. In addition,
assets and liabilities decomposition known that the growth of fixed assets and retained earnings have a positive influence to
return firms. The result by decomposition method asset growth has a positive effect on stock returns, or in other words, the
higher the asset growth, the higher the stock return. Others, the cash growth negatively affect to stock returns at the time of
the asset and operating liabilities have a negative significant effect on stock returns. The decomposition method asset growth
has a positive effect on stock returns, in other words, the higher the asset growth, the higher the stock return. At last, the
cash growth negatively affects to stock returns at the time of the asset and operating liabilities have a negative significant
effect on stock returns.

Item Type: Article
Uncontrolled Keywords: asset growth; decomposition method; return; size; book to market
Subjects: Undip Formal Documents
Divisions: Faculty of Economics and Business > Department of Management
Depositing User: FAKULTAS FEB
Date Deposited: 18 May 2020 08:25
Last Modified: 18 May 2020 08:25
URI: https://eprints2.undip.ac.id/id/eprint/2609

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