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SEARCHING PROXIES OF INVESTMENT OPPORTUNITY SETS AND IDENTIFYING INFORMATION CONTENT

Journal of Management and Entrepreneurship

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Title SEARCHING PROXIES OF INVESTMENT OPPORTUNITY SETS AND IDENTIFYING INFORMATION CONTENT
 
Creator Kaaro, Hermeindito; Lecturer, Widya Mandala Catholic University, Surabaya
 
Subject investment opportunity set, realized growth, information content.
 
Description The concept of the investment opportunity set (IOS), which was first noted by Myers (1977), plays an important role in the capital market because it implies future growth, which is relevant in predicting the shareholder's expected wealth. Unfortunately, IOS cannot be observed directly. Because IOS is an unobservable construct, the researcher must find appropriate proxies for IOS to capture Myers' idea. A number of studies have been done to obtain appropriate proxies of IOS. One major finding is presented by Kallapur and Trombley (1999), that suggests appropriate proxies of IOS and attempting to identify whether the IOS of the firms are credible for representing the future (realized) growth.
This paper attempts to review IOS literature, especially Kallapur and Trombley's study. Some limitations of their study are noted here. This paper proposes a method to confirm the constructs of IOS and develops a new model in searching appropriate proxies for IOS. The present model also allows researchers not only to determine appropriate proxies for IOS but also to identify which proxies of IOS have good or bad information content.


Abstract in Bahasa Indonesia :

Konsep investment opportunity set (IOS), yang pertama diungkapkan oleh Myers (1977), memiliki peranan penting dalam pasar modal karena berimplikasi adanya pertumbuhan di masa depan, yang relevan untuk meramalkan ekspektasi kekayaan pemegang saham. Namun, kelemahannya adalah IOS tidak dapat diamati langsung. Oleh karena itu, para peneliti harus mencari data yang tetap yang dapat mewakili variabel IOS agar sesuai dengan gagasan Myers. Beberapa penelitian telah dilakukan untuk itu termasuk penemuan dari Kallapur dan Trombley (1999) yang mengusulkan beberapa variabel yang tepat untuk mewakili IOS dan juga mencoba menentukan apakah IOS dari perusahaan-perusahaan cocok untuk menggambarkan pertumbuhan masa depan yang actual.
Penelitian ini bertujuan mengkaji literature IOS, terutama penelitian Kallapur dan Trombley. Beberapa kendala dari analisa mereka ditemukan. Penelitian ini juga mengajukan metode baru untuk menentukan pengembangan IOS dan juga mengembangkan model baru untuk mencari variabel yang tepat yang dapat mewakili IOS. Model tersebut memampukan para peneliti untuk menentukan variabel yang tepat untuk mewakili IOS dan juga membedakan variabel-variabel tersebut berdasarkan informasi yang diberikan.

Kata kunci: investment opportunity set, pertumbuhan actual, isi informasi.
 
Publisher Institute of Research and Community Outreach - Petra Christian University
 
Date 2004-06-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://jurnalmanajemen.petra.ac.id/index.php/man/article/view/15620
10.9744/jmk.4.1.pp. 36-45
 
Source Jurnal Manajemen dan Kewirausahaan; Vol 4, No 1 (2002): MARCH 2002; pp. 36-45
 
Language eng
 
Relation http://jurnalmanajemen.petra.ac.id/index.php/man/article/view/15620/15612
 
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