1. DISSERTATION PROPOSAL
THE DETERMINANTS OF CASH FLOW FROM OPERATING THAT
AFFECT ON FINANCIAL DISTRESS: EVIDENCE FROM INDONESIAN
STATE-OWNED ENTERPRISES
Aminullah Assagaf
Supervisor,
Assoc. Prof. Dr. Mohd Hassan Che Haat, AIIA
Assoc. Prof. Dr. Yusliza Mohd Yusoff
DOCTOR OF PHILOSOPHY PROGRAM-ACCOUNTING
UNIVERSITI MALAYSIA TERENGGANU
2020
2. TABLE OF CONTENT
Page
TABLE OF CONTENT ………………………………………………………. ii
LIST OF TABLES…………………………………..……………………..…. iii
LIST OF FIGURES ……..………………………………………………….… iv
LIST OF APPENDICES …………………………………………………..… v
CHAPTER
1 INTRODUCTION
1.1 Background of the Study ………………..……………………….. 1
1.2 Motivation of the Study ………………………………………….. 7
1.3 Statement of the Problem ………………………………………… 9
1.4 Research Questions……………………………………..………… 11
1.5 Contribution of the Study ……………..………………………….. 12
1.6 Significance of the Study …………………………………………. 14
1.7 Objective of the Study ……………………………………………. 15
1.8 Organizatio of Thesis ………….………………………………….. 16
2 LITERATURE REVIEW
2.1 Agency Theory ……………………………………………….….. 18
2.2 Signalling Theory ………………………………………………... 18
2.3 Marginal Approach………………………………………………. 19
2.4 Financial Distress ..………………………………………………. 25
2.5 Marginal Approach Research .……….………………………...... 27
2.6 Research SOE ……………..………….………………………...... 28
3 CONCEPTUAL FRAMEWORK AND HYPOSTHESIS
DEVELOPMENT
3.1 Conceptual Framework ………………………………….………. 30
3.2 Hypothesis Development …………………………………….…,, 33
4 METHODOLOGY
4.1 Research Design ………………………….……………..……...... 40
4.2 Sample Selection ……………………………….……………… .. 40
4.3 Measurement of Variable ………………………………………… 41
4.4 Research Model ………………………………………………...... 46
REFECRENCES …………………………………………………………….. 48
APPENDICES ……………………...…………..…….……………………… 61
ii
3. LIST OF TABLES
No. Page
1. Measurement of Dependent and Intervening Variables ……………… 42
2. Measurement of Dependent and Intervening Variables ……………… 43
3. Measurement of control variables ……………………………………. 46
iii
4. LIST OF FIGURES
No. Page
1. Agency theory and financial distress …………………………………… 18
2. Signaling theory and financial distress ………………………………… 19
3. Balance Marginal Revenue and Marginal Cost (MR = MC) …………… 22
4. Curves of Marginal (MR = MC) ………………………………………... 24
5. Conceptual framework ………………………………………………….. 30
iv
5. LIST OF APPENDICES
No. Page
1. SUBSIDY 2012-2017 ……………………………………………………………... 61
2. ADDITIONAL STATE CAPITAL INVESTMENTS (PMN) 2015-2018 ………... 62
3. SOE THE LOSS 2010-2017 ………………………………………………………. 63
4. SOE IN SUBSIDIES,ADDITIONAL GOVERNMENT EQUITY ANDLOSS … 64
5. BALANCE OF MARGINAL (MR = MC) ……………………………………….. 65
6. SCORE MARGINAL (SMg) ……………………………………………………... 68
7. PREVIOUS RESEARCH ………………………………………………………… 69
8. EXAMPLE OF CALCULATION OF ESTIMATED SCORE MARGINAL ……. 75
9. DEVELOPMENT OF SOE YEAR 2004-2017 …………………………………... 76
10. 5 TYPES OF RESEARCH GAP ………………………………………………… 77
11. SUMMARY ASSESSMENT OF FINANCIAL DISTRESS …………………… 78
12. HISTORY OF FINANCIAL DISTRESS STUDIES ……………………………. 80
v
