Pengujian hipotesis pecking order pada perusahaan manufaktur yang terdaftar di Bursa Efek Jakarta periode 2000-2002

The Purpose of this study is to test the pecking order hypothesis of corporate financing decisions. This study build on work by Baskin (1989), Kaaro (2003) and Tong (2004) to set up two distinct models which examine related aspects of corporate financing where trade off and pecking order theories provide distinctively different prediction. The first model is examining the determinants of leverage which are profitability, size, sales growth & dividend payout ratio. The second model is examining the determinants of corporate investment. which are profitability, size, dividend payout ratio & financial leverage. Each determinants have their own relationship that later can explain & support some financing theories according with Indonesian economic conditions. The data of this Study is collected from 33 manufacturing companies that listed in the Jakarta Stock Exchange for the period of 2000-2002. The Ordinary Least Square is used to examine the relationship in each model. This study finds two main result. First, there are significant relationship between profitability, size, growth, & dividend towards financial leverage; Second, There are significant correlation between profitability, size, financial leverage, dividend toward investment. Both these findings tend to support the pecking order hypothesis, althought the signs of some other variables in these model are more consistent with trade off theory. Overall, the result provides some tentative support for the pecking order hypothesis. They also confirm that conventional model of corporate capital structure can be used to explain the financing behaviour of Indonesian companie