The Department of Management, Faculty of Economics and Business, Universitas Negeri Semarang (FEB UNNES), proudly announces the publication of an international research article by its faculty members in Foundations of Management, an internationally peer-reviewed journal published by Warsaw University of Technology and Paradigm Publishing.
The article, entitled “Capital Structure Decision: Asymmetric Information in Total Assets and Growth Opportunities,” was authored by Martono, Arief Yulianto, Angga Pandu Wijaya, and Boonrat Plangsorn. The publication reflects the department’s commitment to advancing internationally recognized research in the fields of corporate finance, strategic management, and financial decision-making.
The study examines how asymmetric information influences corporate capital structure decisions among Indonesian companies issuing equity during the post-COVID-19 recovery period. Drawing on 126 firm observations from companies listed between 2020 and 2023, the researchers analyzed how total assets and growth opportunities affect financing decisions across different stages of a firm’s life cycle.
The findings demonstrate that the determinants of capital structure vary according to the firm’s life cycle. For companies in the maturity stage, larger asset bases and stronger growth opportunities reduce asymmetric information, encouraging more efficient equity financing decisions. In contrast, firms in the growth stage exhibit different financing behavior, indicating that growth opportunities alone do not necessarily reduce information asymmetry in capital markets. These findings provide important empirical evidence for understanding financing strategies in emerging economies and contribute to the ongoing development of capital structure theory, particularly the Pecking Order Theory.
Beyond its academic contribution, the research offers practical implications for corporate managers, investors, and policymakers. A better understanding of asymmetric information enables organizations to design more effective financing strategies, improve corporate transparency, and strengthen investor confidence in capital markets.
This publication further demonstrates the Department of Management’s dedication to producing impactful research with both academic and practical relevance. Through collaborations involving international scholars, the department continues to expand its global research network while contributing innovative knowledge to contemporary business and management issues.
The study also supports several United Nations Sustainable Development Goals (SDGs). It contributes to SDG 8 (Decent Work and Economic Growth) by promoting efficient corporate financing strategies that enhance business sustainability and economic growth. The research aligns with SDG 9 (Industry, Innovation and Infrastructure) by providing evidence that supports stronger corporate financial resilience and long-term investment capacity. Furthermore, the international collaboration among researchers reflects the spirit of SDG 17 (Partnerships for the Goals) through cross-border academic cooperation and knowledge exchange.
Through high-quality international publications, the Department of Management FEB UNNES continues to strengthen its global academic reputation while generating evidence-based solutions that support sustainable business development, financial resilience, and responsible corporate decision-making.