Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)

Behavior of Accumulated Assets and Sources of Funding

Authors
Sulastri, Isnurhadi, Dinarossi Utami, Marlina Widiyanti
Corresponding Author
Sulastri
Available Online 23 May 2020.
DOI
10.2991/aebmr.k.200520.006How to use a DOI?
Keywords
assets accumulation, financing, productivity, growth
Abstract

Behavior of asset accumulation or wealth accumulation becomes an important issue to study because it has the potential for aggregate and global financial imbalances. Economic theory explains that the accumulation of assets as a function to improve welfare in the context of business processes, has implications for the welfare of stakeholders, if the process of asset accumulation occurs due to sales growth, saving and investment, all three will not interact. To discuss this matter, research has been carried out on the manufacturing sub-sector in Indonesia Stock Exchange with pooling data for 2014-2018 and 342 samples. The results showed that sales growth, debt to equity ratio, and changes in equity had a positive effect on asset accumulation, while saving behavior as measured by marginal propensity to save had no effect on asset accumulation, and interestingly, asset turnover had a negative effect on asset accumulation as an indication that investment growth is not matched by an increase in income, meaning that the level of asset productivity is relatively low. This finding implies that asset growth does not make it more productive in generating sales growth, meaning that the accumulation of assets occurs due to an external funding mechanism and an increase in equity compared to a mechanism of growth, saving and investment.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
23 May 2020
ISBN
978-94-6252-972-4
ISSN
2352-5428
DOI
10.2991/aebmr.k.200520.006How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Sulastri
AU  - Isnurhadi
AU  - Dinarossi Utami
AU  - Marlina Widiyanti
PY  - 2020
DA  - 2020/05/23
TI  - Behavior of Accumulated Assets and Sources of Funding
BT  - Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
PB  - Atlantis Press
SP  - 28
EP  - 32
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200520.006
DO  - 10.2991/aebmr.k.200520.006
ID  - 2020
ER  -