Behavior of Accumulated Assets and Sources of Funding

摘要

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.