Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity

Main Purpose - This study aims to examine the influence of financial reporting quality, accounting conservatism, and debt maturity on investment efficiency in manufacturing companies listed on the Indonesia Stock Exchange. Method - A quantitative approach was employed to analyze secondary data from...

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Main Authors: Syifa Lathifunnisa, Dyarini Dyarini
Format: Article
Language:English
Published: Faculty of Economics and Business, Universitas Muhammadiyah Cirebon 2025-06-01
Series:Jurnal Proaksi
Subjects:
Online Access:https://e-journal.umc.ac.id/index.php/JPK/article/view/7156
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author Syifa Lathifunnisa
Dyarini Dyarini
author_facet Syifa Lathifunnisa
Dyarini Dyarini
author_sort Syifa Lathifunnisa
collection DOAJ
description Main Purpose - This study aims to examine the influence of financial reporting quality, accounting conservatism, and debt maturity on investment efficiency in manufacturing companies listed on the Indonesia Stock Exchange. Method - A quantitative approach was employed to analyze secondary data from 20 companies selected through purposive sampling, resulting in 100 observations. SPSS version 25 was used as the data analysis tool for regression analysis. Main Findings - The phenomenon of investment efficiency has become increasingly crucial following a 16.32% annual decline in manufacturing investment from 2017 to 2019. Market uncertainty and limited incentives hinder economic growth, making fund optimization essential to support this sector. The research findings reveal that the quality of annual financial reports, accounting conservatism, and debt maturity have a significant impact on investment efficiency. Theory and Practical Implications - These findings highlight the importance of financial reporting quality, accounting conservatism, and debt maturity structure in enhancing investment efficiency. They suggest that companies should manage these three aspects optimally to support better investment decision-making. Novelty - This study utilizes the latest data (2019–2023) and a larger sample, enabling a more comprehensive analysis of the dynamics, challenges, and opportunities in the manufacturing industry.
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institution Kabale University
issn 2089-127X
2685-9750
language English
publishDate 2025-06-01
publisher Faculty of Economics and Business, Universitas Muhammadiyah Cirebon
record_format Article
series Jurnal Proaksi
spelling doaj-art-45d919a58c164b93b5bbbe234bedd9e42025-08-20T03:51:08ZengFaculty of Economics and Business, Universitas Muhammadiyah CirebonJurnal Proaksi2089-127X2685-97502025-06-0112227028610.32534/jpk.v12i2.71566156Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt MaturitySyifa Lathifunnisa0Dyarini Dyarini1Universitas Muhammadiyah JakartaUniversitas Muhammadiyah JakartaMain Purpose - This study aims to examine the influence of financial reporting quality, accounting conservatism, and debt maturity on investment efficiency in manufacturing companies listed on the Indonesia Stock Exchange. Method - A quantitative approach was employed to analyze secondary data from 20 companies selected through purposive sampling, resulting in 100 observations. SPSS version 25 was used as the data analysis tool for regression analysis. Main Findings - The phenomenon of investment efficiency has become increasingly crucial following a 16.32% annual decline in manufacturing investment from 2017 to 2019. Market uncertainty and limited incentives hinder economic growth, making fund optimization essential to support this sector. The research findings reveal that the quality of annual financial reports, accounting conservatism, and debt maturity have a significant impact on investment efficiency. Theory and Practical Implications - These findings highlight the importance of financial reporting quality, accounting conservatism, and debt maturity structure in enhancing investment efficiency. They suggest that companies should manage these three aspects optimally to support better investment decision-making. Novelty - This study utilizes the latest data (2019–2023) and a larger sample, enabling a more comprehensive analysis of the dynamics, challenges, and opportunities in the manufacturing industry.https://e-journal.umc.ac.id/index.php/JPK/article/view/7156 investment efficiencyfinancial statement qualityaccounting conservatismdebt maturitymanufacturing companies
spellingShingle Syifa Lathifunnisa
Dyarini Dyarini
Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity
Jurnal Proaksi
investment efficiency
financial statement quality
accounting conservatism
debt maturity
manufacturing companies
title Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity
title_full Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity
title_fullStr Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity
title_full_unstemmed Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity
title_short Determinants of Investment Efficiency: Financial Reporting, Accounting Conservatism, and Debt Maturity
title_sort determinants of investment efficiency financial reporting accounting conservatism and debt maturity
topic investment efficiency
financial statement quality
accounting conservatism
debt maturity
manufacturing companies
url https://e-journal.umc.ac.id/index.php/JPK/article/view/7156
work_keys_str_mv AT syifalathifunnisa determinantsofinvestmentefficiencyfinancialreportingaccountingconservatismanddebtmaturity
AT dyarinidyarini determinantsofinvestmentefficiencyfinancialreportingaccountingconservatismanddebtmaturity