Dynamic performance of Indonesian public companies: An analysis of financial decision behavior

Figures & data

Figure 1. Research framework.

Table 1. Descriptive statistic of the numerical research variables

Variables	Mean	Median	Max	Min	Std. Dev.	Skewness	Kurtosis	JB	Obs.
ROA	0.0379	0.0313	0.9917	−0.9866	0.1270	−0.5958	16.8420	18,755.3	2332
TOBIN’S Q	1.0147	0.8275	3.2280	0.1012	0.6268	1.2579	4.1694	747.824	2332
INV	0.0893	0.0817	1.3715	−2.0067	0.2359	−0.9570	15.5266	15,602.8	2332
LEV	0.2752	0.2438	0.9867	0.0002	0.2079	0.6930	2.9166	187.348	2332
DPS	0.0968	0.0000	5.6823	0.0000	0.3254	8.5995	110.8409	1,158,759	2332
FCF	0.0712	0.0650	1.9703	−1.7842	0.1823	0.5834	45.6401	176,799	2332
B_SIZE	4.3568	4.0000	13.0000	1.0000	1.8716	1.2604	4.6983	897.646	2332
B_ICOM	0.3027	0.3300	0.5000	0.2000	0.0841	0.6723	3.3780	189.533	2332
F_SIZE	20.6137	20.7748	25.9905	0.0000	2.3516	−3.6946	33.9780	98,549.7	2332

Notes: ROA is Return on asset, TOBIN’S Q is market value of equity plus book value of total debt over book value of total assets, LEV is leverage, DPS is dividend per share, FCF is free cash flow, B_SIZE is board size, B_ICOM is board independent commissioners and F_SIZE is firm size.

Table 2. The correlation signs of independent variables with firm performance

Independent variables	ROA	TOBIN’S Q
INV	+	+/ins
LEV	-	+/ins
DPS	+	+
FCF	+	+
B_SIZE	+	+
B_ICOM	+/ins	+/ins
F_SIZE	+	+

Notes: The sign ± is positive or negative significant, ins is insignificant, ROA is Return on Asset, INV is investment measured by natural logarithm of growth total assets, LEV is leverage measured by total debt to total assets, DPS is dividend per share, FCF is free cash flow, B_SIZE is board size, B_ICOM is board of independent commissioners and F_SIZE is firm size.

Table 3. Estimation result based on GMM-Difference for Equations (1.1) and (1.2).

	ROA	TOBIN’S Q
Independent variables	Second-Lag	First-Lag
ROA(−1)	0.1309
	(6.800)***
ROA(−2)	0.0214
	(1.500)**
TOBIN’S Q(−1)		0.3050
		(9.096)***
INV	−0.0228	−0.1694
	(−2.965)***	(−4.998)***
LEV	−0.0509	0.4087
	(−3.585)***	(5.235)***
DPS	0.0448	0.1871
	(3.627)***	(4.446)***
FCF	0.4872	−0.0186
	(15.737)***	−0.4720
B_SIZE	0.0004	0.0106
	0.7793	0.8902
B_ICOM	0.0021	0.1967
	0.8612	2.113)**
F_SIZE	0.0020	0.0010
	(0.096)*	0.2566
Wald F-test	(116.42)***	(33.68)***
Arellano-Bond test:
AR(1) (p value)	0.0000	0.0000
AR(2) (p value)	0.7367	0.0485
Hansen test (p value)	0.1519	0.0545
Number of instrument	51	61
Observation	1696	1908

Notes: Robust standard error in parentheses *, **, *** significant at 10%, 5%, and 1% level, except p value for Hansen test and Arellano-Bond test.