Financing Decisions: Is the Quality of Information Still Relevant to be Considered?

Information asymmetry makes it difficult for company management to make decisions regarding funding sources. This study aims investigate and explain the behaviour of when faced with asymmetric information problems. Data on 459 companies in Indonesia during 2005–2019 period are surveyed an attempt provide latest evidence this issue. Investigations using fixed-effect model approach dynamic two-step system generalised method moments carried out preliminary robustness tests. The results show that addition company-specific factors, problem is important factor considered by determining worsening gap has led increasingly use external from borrowing instead adding additional sources equity issuance (confirming pecking order theory). Robust will be regulators enrich literature related corporate developing countries. Keywords: Asymmetric information; financial risk; capital structure; crisis; Indonesia. ABSTRAK Asimetri maklumat menyukarkan pengurusan syarikat untuk membuat keputusan mengenai sumber pembiayaan. Kajian ini bertujuan menyiasat dan menjelaskan tingkah laku apabila berhadapan dengan masalah tidak simetri. di dalam tempoh ditinjau usaha memberikan bukti terkini isu ini. Penyiasatan menggunakan pendekatan dijalankan ujian awal kekukuhan. Hasil kajian menunjukkan selain faktor khusus syarikat, simetri merupakan penting yang dipertimbangkan oleh pihak menentukan Jurang semakin teruk telah menyebabkan pembiayaan luar daripada peminjaman bukannya menambah pendanaan tambahan terbitan ekuiti (mengesahkan teori order). Keputusan kukuh akan berguna kepada pengawal selia memperkayakan literatur berkaitan korporat negara membangun. Kata kunci: Maklumat asimetri; risiko kewangan; struktur modal; krisis;