Analysis of the Effect of Light Assets on Capital Structure

Disma Marliana and Oman Sukirman

Catering Industry Management, Indonesia University of Education, Bandung, Indonesia

Keyword: Asset Light, Capital Structure, FAR, DAR, Restaurants, Hotels and Tourism

Abstract: This study will discuss how asset light leverageton the capital structure. Focusing on the sub-sectors of the

restaurant, hotel and tourism this coincided with the growing tourism industry in Indonesia. Using data from

the annual financial statements for nine years, the period of 2009-2017 as secondary data in this study. To

calculate light assets using the FAR (Fix-assets ratio) compares with total assets of fixed assets and to

calculate its capital structure using the DAR (Debt to Asset Ratio) compares the total debt to total assets.

From the second asset light ratio and capital structure, arranged in the form of a combinate between the time

series data and cross section data (panel data). Special processing tools used panel data is EViews 9 to find

the results of descriptive analysis and verification. The results of this study found that asset light positively

affects capital structure. 55% of the asset light effect on the capital structure in line with the results of the

research asset light of Yuan Li & Singal on Capital Structure in the Hospitality Industry: The Role of the

Asset Light and Fee Oriented Strategy

1 INTRODUCTION

Based on the Annual Report of the World Tourism

Organization in 2017, the Assembly General of the

UN stated, in 2017 the year that is very important for

the people of tourism globally, in 2017 as the

International Tourism Sustainable for the

development, recognition globally, contributing

transformative tourism to the agenda of

development. Activities and events that occur in the

entire year 2017, within the framework of

international, aims to increase awareness in the

whole world about the potential of the sector of

tourism in leading the growth of economic, social,

preservation of culture and the environment. The

benefits of social and economic which can be in the

maximize of tourism and minimize the impact

negatively on the environment community. In the

years that will come up with a policy that is

determined, the company and all travelers

contribute. (UNWTO, 2017)

Tourism in Indonesia is very potential with

landscape nature are exotic and have power

attraction of tourist to visit the objects of tourist are

beautiful with various kinds of culture were held.

Developments visits rating foreign countries to

Indonesia experienced a rise from the year 2016

until the year 2017. The increase in visits Tourists

are much higher in comparison with the state of

competitors.

The increase in visits by foreign tourists in

Indonesia experienced a rise of 22%. Compared with

some countries of ASEAN more like Thailand rose

by 8.7%, Singapore rose as much as 5.8% and 4.0%

rise that experienced by Malaysia, but Indonesia is a

low rise in visits by foreign tourists when compared

with Vietnam are experiencing the increase

amounted to 29%.

Tourism can improve and have role important in

every field. In the field of ecotourism in the years

2014-2016 the sector of tourism contributes to the

Product Domestic Bruto (GDP), provide the

opportunity it directly or not directly to the

perpetrators of the business services of tourism and

open up many opportunities of work. The tourism

industry is experiencing developments ranging from

accommodation, tourism services, transportation and

several other tourism industries that have

experienced a significant increase every year.

The role of the asset light strategy can reduce

risk and facilitate company growth with a minimum

capital investment. This strategy has received the

attention of industry practitioners and academics,

especially in the service sector such as the tourism

industry, hotels and restaurants which have heavy

Marliana, D. and Sukir man, O.

Analysis of the Effect of Light Assets on Capital Structure.

DOI: 10.5220/0009881401170122

In Proceedings of the 1st NHI Tourism Forum (NTF 2019) - Enhancing Innovation in Gastronomic for Millennials, pages 117-122

ISBN: 978-989-758-495-4

117

assets to carry out their operational activities. (Li &

Singal, 2019)

How to work asset light that is applied by the

company in general begins with determining the

asset remains (property, plant and equipment) that

are owned. Having determined that the company that

will implement the asset light further companies will

seek investor as a partner company in the

complementary needs of the assets of companies

mentioned. When this many companies are

implementing asset light in running and managing

finances. One of the examples is the enterprise

sectors of tourism such as Airbnb and there are also

companies in the sector of transport such as Gojek.

Both companies are promoting a system application

as a tool major in running its business. They hook

partners who are willing to provide equipment and

property as business facilities. With such companies

are not issuing capital investment in the asset

remains in the number of large, but more to the

development and management of system

applications as the capital of a major effort.

Companies like this are seen using light assets as

their business strategy.

The structure of capital is the ratio of the amount

of debt or capital foreign to the capital itself.

(Mustafa, 2017). The structure of capital optimum

happen if the risks and returns that are expected

balanced, so the price of the stock will be in

maximized. Business risk is a risk that occurs in

companies because the company does not use debt

in the company's operations. While the financial risk

is the risk that occurred in the company so it

becomes burden for holders of shares, because the

company in its discretion to use debt in the activities

of the operating companies.

This study aims to determine the effect of asset

light on capital structure in companies in the

restaurant, hotel and tourism sub- sectors and also

with regard to the culinary industry, especially in the

restaurant sub- sector companies. The title of the

article it is " “ANALYSIS OF THE EFFECT OF

LIGHT ASSETS ON CAPITAL STRUCTURE” is

expected to add to the knowledge about the

management of finances and also have benefits for

business growth in the culinary field or restaurant,

hotel, and tourism generally for the community and

especially for writers.

2 LITERATURE REVIEW

2.1 Tourism

Understanding Tourism According to the Law of the

Republic of Indonesia 10 Year 2009 on Tourism,

Tourism is the activities of the trip that made a

person or group of people to visit the place specified

for the purpose of recreation, the development of

personal, or learn kaunikan southwest Pull tourist

who visited the period of time while.

Tourism is a type of business that has economic

value. Tourism is as a process that can create value

added to goods or services as a single entity product,

well that seems or real (tangible products) and that is

not visible or not tangible (intangible product).

(Sulastiyono, 2008)

2.2 Gastronomic Tourism

According Turgarini Goddess (2015) development

of gastronomy as an object of travel is recognized as

a way to conduct cultural culinary locally,

stimulating demand for tourism and increase the

power of competitiveness destinations, making

tourism the gastronomic also has emerged as a

component that is important. Travelers will find it to

get the experience more towards culture locally, then

the public to share the local culture them with

travelers through the media of this, residents of local

make representations identity of purpose. The

formation of identity and the creation of the image

of the right bekaitan with food locally, so it can

attract the market that target and bermanfaaat

development of tourism gastronomy.

According to Pitana & Rukendi (2008: 4)

Culinary Tourism is a tourism product where food

and cuisine are the main power. Actually, becoming

southwest pull or not, food and beverages remains

important in various types of tourism because every

person definitely needs to eat

2.3 Restaurant

According to Major Rai (2016: 99) Restaurant is a

place or building that is organized by a commercial,

which organizes services with good to all his guests

either in the form of meal or drinks.

2.4 Tourism Facilities and

Infrastructure

According Bagyono (2012: 21) argues that the

means tourism is a facility of service which is

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supplied by the company to travelers either directly

or not directly. According to Major Rai (2016: 175)

Infrastructure is all something that is supporting

major of the implementation of a process of tourism.

Infrastructure of tourism that is all that is in the form

of facilities supporting primary that allows to turn on

and develop a means of tourism to provide services

up to the traveler.

2.5 Hospitality Accommodation

According Zalukhu and Meyers ( 2009: 6-7)

accommodation hospitality is a place where travelers

spend the night for a while in an area of travel.

Accommodation facilities are generally equipped

with facilities for eating and drinking. Means of

accommodation that makes travelers feel at home is

a property that is clean, with service that is good (

friendly and right time ), as well as the location of

which is relatively easy to reach. There are other

types of accommodation based on the shape of the

building, facilities, and services that are provided are

: Hotel, Guest House, Homestay, Inn, campground,

and Villa.

2.6 Financial Management

Management Financial is a part important of the

whole management as a whole. Management of

finances related to the task manager finance in a

business enterprise that is directly related to the

department functional as marketing and production.

Management of finance has the space scope of that

broad with the approach multidimensional. (

Cashmere, 2009)

2.7 Asset Light

Asset Light is a strategy that aims to boost profits

and suppress the amount of capital to maximize the

value of the company to holders of shares. The Asset

Light strategy can reduce risk and facilitate company

growth by minimizing or reducing capital

investment. (Li & Singal, 2019)

The Asset Light strategy can affect capital

structure through loans. Given that tangible assets

can be used as collateral for loans. Even in the case

of bankruptcy, assets of intangibles can emerge from

the bankruptcy that most large are not controlled.

(Sohn, Tang, & Jang, 2013)

2.8 Capital Structure

The structure of capital is the balance between the

amount of debt term short to be permanent, the debt

term long, shares of preferred and shares ordinary.

Capital structure is the comparison between foreign

capital or the amount of debt with own capital.

Wisdom of the structure of capital is an election

between risks and returns are expected. (Mustafa,

2017)

2.9 Hypothesis

Based on the studies previously were poured in the

background behind, the study of literature and the

results of the study earlier gives an overview on the

study of this, allegedly no influence Asset Light on

the Structure of Capital in the Company Sub Sector

Restaurants, Hotels and Tourism are Listed on the

Stock Exchange Indonesia Period 2009-2017.

3 RESEARCH METHOD

Research is using the approach to management of

finance, especially regarding the analysis of the

effect of the asset light on the structure of the

Capital at Companies Sub Sector Restaurant Hotel

and Tourism which is listed on the Stock Exchange

Indonesia Period 2009-2017. The object of research

that investigated consist of a variable dependent the

structure of capital and asset light as a variable

independent. The object of research is data- the data

reports of financial companies are listed on the

Stock Exchange Indonesia on sub sectors

Restaurant, Hotel and Tourism. While the subject of

research this is the Company's sub- sectors

Restaurant, Hotel and Tourism are listed on the

Stock Exchange Indonesia period 2009-2017 are

associated with the asset light and Structure Capital.

Method of taking a sample that used is purposive

sampling. Purposive sample is done by way of

taking the subject is not based on strata, random or

region but is based on the purpose specified. From

25 companies which is registered in the sub- sector,

restaurants, hotels and tourism, only 17 companies

were taken as samples because meet the criteria for

the study of this.

Types and sources of data exist in the research is

to use the data quantitatively in the form of a data

source which is data that is obtained in the form of

already finished in the form of publications.

Secondary data is generally in the form of evidence,

historical records or reports that have been compiled

Analysis of the Effect of Light Assets on Capital Structure

119

in archives ( documentary data ) published. Data

secondary are needed in research this is the report of

financial year the Company Sub- sectors Restaurant,

Hotel and Tourism are listed on the Stock Exchange

Indonesia period 2009 - 2017. The incorporation of

the data time series data and cross section or are

often referred to by the panel data, and to calculate

the data panel using the EViews 9 application.

Descriptive analysis aims to determine the value

of variables. In this study aims to discuss how to

influence asset light on srtuktur capital of the

Company Sub Sector Tourism, Hotels and

Restaurants Listed in Indonesia Stock Exchange

Period 20 09- 201 9. Meanwhile, to measure the

effect of the two variables in the research is to use

the test regression linear simple. According Pramesti

(2018: 115) Regression is one of the techniques in

the science of statistics to determine the relationship

between two or more variables. In the analysis of

regression, will determine a linear model between

one or more variable -free ( independent ) against

one or more variable dependent ( dependent ).

Model analysis of regression linear simple can be

described as mathematically as follows:

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4 RESEARCH RESULTS AND

DISCUSSION

Indonesian Stock Exchange (IDX), or which is more

known as the Stock Exchange Indonesia (BEI) is a

capital market that is owned by Indonesia, which is a

combination between the Stock Exchange Jakarta

(JSX) and the Stock Exchange Surabaya (BES)

merges into the Stock Exchange Jakarta (JSX) and

changed its name into Stock Exchange Indonesia

(BEI). Act Capital Markets 8 year 1995 on capital

markets to define the capital market as follows

" The activities are concerned with offers general

and trading securities, companies public which

relates to the effect of the issuance, as well as

institutions and professions which relates to the

effect ".

The Indonesia Stock Exchange is a stock

exchange that can provide investment and funding

sources in an effort to support national economic

development. Stock Exchange Indonesia also play a

role in efforts to develop investors locally are large

and solid to create Indonesian capital market stable.

The vision and mission of the Stock Exchange

Indonesia is Becoming exchanges competitive with

the credibility level of the world and provide the

infrastructure to support the implementation of

trading securities that regular, fair, and efficient and

easily accessible by the entire stakeholder interests (

stakeholders ). In the sub- sector of restaurants,

hotels and tourism registered 25 companies and only

17 companies that meet the criteria of the samples

were used in the study of this

The result if the data presented in the study is an

output of the testing of data statistical use

application EViews 9. The result if the data

regression is divided into two parts namely parts of

the first to find out the effect of asset light on the

structure of capital in companies sub- sector of the

restaurant, hotel and tourism were registered in

Indonesia Stock Exchange Period 2009-2017. Part

two to determine the effect of asset light on the

structure of capital, but more focused on the

company's restaurants are listed on the Stock

Exchange Indonesia Period 2009-2017. Here are the

results of data processing

Table 1.

Source: Data Proceed

Then, the regression equation will be presented:

Table 2

DAR = 0.319+1.899 FAR

DAR

BUVA

= 0.069+0.319+1.899 FAR

BUVA

DAR

FAST

= 0.140+0.319+1.899 FAR

FAST

DAR

HOME

= -0.221+0.319+1.899 FAR

HOME

DAR

ICON

= 0.278 +0.319+1.899 FAR

ICON

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DAR

INPP

= -0.058+0.319+1.899 FAR INPP

DAR

JIHD

= 0.049+0.319 +1.899 FAR JIHD

DAR

JSPT

= 0.022 +0.319+1.899 FAR JSPT

DAR

KPIG

= -0.183+0.319+1.899

FAR KPIG

DAR

MAMI

= -0.248+0.319+1.899 FAR

MAMI

DAR

PANR

= 0.309+0.319 +1.899 FAR

PANR

DAR

PDES

= 0.078 +0.319

+1.899

FAR

PDES

DAR

PGLI

= -0.225+0.319+1.899 FAR PGLI

DAR

PJAA

= -0.005+0.319

+1.899

FAR PJAA

DAR

PNSE

= -0.025+0.319+1.899 FAR

PNSE

DAR

PSKT

= -0.090+0.319+1.899 FAR

PSKT

DAR

PTSP

= 0.197+0.319+1.899 FAR PTSP

DAR

SHID

= -0.088+0.319+1.899 FAR SHID

5 DISCUSSION

FAR (Fixes-asset ratio) is a means of measuring to

calculate asset light on the study of this. By way

calculated using the formula FAR ie PPE (Plant,

Property and Equipment) divided by total assets.

Companies sub scores restaurant, hotel and

tourism the period 2009-2017 had an average FAR

is 3.71%, which means that on average across the

enterprise sub- sector of the restaurant, hotel and

tourism period of use PPE at 3.71% of total assets in

asset light his.

Year 2016 company SHID has a ratio of FAR the

highest is 10%, which means the company SHID

have asset light (PPE) one-tenth of total assets.

While the ratio of FAR bottommost owned by the

company FAST in the year 2011 amounted to

0.0015%, which means that asset light (PPE)

0.000015 times the total assets.

DAR (Debt to Asset Ratio) is a measurement

tool to calculate the capital structure in this study.

By way calculated using the formula DAR is total

debt divided by total assets. Companies sub scores

restaurant, hotel and tourism the period 2009-2017

had an average DAR 0.39, which means that on

average across the enterprise sub- sector of the

restaurant, hotel and tourism period has a debt of

39% in the structure of the capital of her.

Year 2011 company ICON is the number of the

highest is 0.82 which means the company ICON has

a debt as much as 82% in the structure of capital.

While the amount of room that is 0.02 which

acquired the company INPP in the year 2009, which

means that companies that have a debt amount of

2% in the structure of capital.

The results if the data part of the first that is

contained in the drawing 1 indicates that the results

of the FAR influence positively and significantly to

the DAR. While the results of the R test have an R-

Squared value of 0.550. Figures have had the sense

that amounted to 55% asset light (FAR) can affect

the structure of capital (DAR) and by 45%

influenced by factors other that are not investigated

6 CONCLUSIONS

Based on the results of research and discussion

which has been done on the analysis of the effect of

the asset light on the structure of the capital can be

concluded that the Asset Light on companies sub-

sector of the restaurant, hotel and tourism are listed

on the Stock Exchange Inonesia the period 2009-

2017 has a value of an average of 3.71%. Y ang

means that on average across the enterprise sub-

sector of the restaurant, hotel and tourism use of

PPE ( assets fixed ) at 3.71% of total assets in asset

light her. The structure of capital in companies sub-

sector of the restaurant, hotel and tourism are listed

on the Stock Exchange Indonesia Period 2009-2017

has a value of an average of 0:39. Which means that

on average across the enterprise sub- sector of

restaurants, hotels and tourism has a debt amounting

to 39% in the structure of capital. Asset Light

influence positively on the structure of capital in

companies sub- sector of the restaurant, hotel and

tourism are listed on the Stock Exchange Indonesia

period 2009-2017.

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