#TITLE_ALTERNATIVE#

• Main Author: MAULIDA, ASTARINA
• Format: Final Project
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/12872
• Institution: Institut Teknologi Bandung

Market timing is the time of firms issue equity when their market value is high and repurchases equity when market value is low. Market timing is very important to be learned because if any company knows how to deal with market timing behavior, it can get much money from that. In this project, the topic of the research is to find the empirical evidence in Indonesia public company case whether market timing impact capital structure. This project uses benchmark paper by Baker and Wurgler that stated market timing has impact to capital structure with U.S. public companies sample. Time frame of this project is from 1998 to 2007, which consist all of companies that listed in Indonesia Stock Exchange in that period of time, and has IPO before 1998. This project use 5 (five) independent variables which are market-to-book, profitability, fixed asset, firm size, and lagged leverage. The dependent variables used are changes in book leverage and changes in market leverage. This project has result which is empirical evidence that market timing doesn’t impact to capital structure in Indonesia. Also, there are some variables found that effected leverage