The roles of screening and monitoring functions in bank loans: an industrial analysis on firm's value in indonesian publicly-listed manufacturing firms
The business dynamics, which are relatively prominent in terms of macroeconomic conditions, have been numerously claimed to affect business operations (Korajczyk and Levy, 2001). At the initial stage, dynamics and/or fluctuations in the country's macroeconomics bring about significant uncertainties, perhaps. Those uncertainties influence not only managerial decisions, but also the market value of the firms. This may push the importance of screening and monitoring functions from banks and other financial institutions in safeguarding their loan repayments. rnThis study attempts to analyze the impact of macroeconomic conditions, screening, and monitoring functions of banks, toward the value of firms. The pool of data used in this study is solely based on financial statements of publicly-listed firms at Bursa Efek Indonesia (BEI'). A total of 99 publicly-listed manufacturing firms are incorporated in this study. Statistical analyses are run in both SPSS and AMOS to note the relationships between macroeconomic conditions
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