Capital Budgeting Multinasional, Biaya Modal dan Struktur Modal Topik: (a) Data yang diperlukan dalam Keputusan Capital Budgeting (b) Factor-Factor dalam Capital Budgeting Multinasional (c) Metode perhitungan Present Value (d) Biaya modal internasional (e) Struktur modal KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

A. Dasar Capital Budgeting Definition: Capital budgeting is proses pengambilan keputusan sehubungan dengan aktivitas investasi aset-aset tetap. Misalnya pembelian mobil baru, mesin pabrik baru dan lain-lain Variabel-variabel dalam Keputusan Capital Budgeting Investasi awal (Initial investment) Permintaan pembeli (Consumer demand) Harga (Price) Biaya variabel (Variable cost) Biaya Tetap (Fixed cost) Usia Proyek (Project lifetime) Salvage value (nilai penyelamatan dari risiko) Perpajakan (Tax-laws) Tingkat pengembalian yang diharapkan (Required rate of return) KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Faktor lain yang perlu dipertimbangkan dalam Capital Budgeting Multinasional Fluktuasi nilai tukar Inflasi Fasilitas pembiayaan (Financing arrangements – subsidies /penalties) Pembekuan dana (Blocked funds) Biaya provisi bank (Remittance provisions) Ketidakpastian sukses/gagal dalam aktivitas incestasi (Uncertain salvage values) Dampak proyek bagi arus kas perusahaan Insentif pemerintah (Government incentives) Biaya sosial (Social costs) / Externalities Risisko politik / risiko negaraPolitical risk /Country risk. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Harga Transfer (Transfer prices) Penerimaan fee dan royalti. Menggabungkan arus kas dan menetapkan tingkat diskonto yang berlaku untuk masing-masing komponen. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Dasar-dasar Capital Budgeting … Popular Techniques 1. Payback Period: Lama waktu yang diperlukan kembalinya dana investasi awal. Artinya jumlah kumulatif penerimaan sama dengan dana awal yang diinvestasikan Discounted Payback Period adalah modifikasi teknik Payback Period dengan cara di perhitungkan nilai waktu. 2. Net Present Value: adalah nilai bersih waktu sekarang dari sebuah proyek investasi. k = required rate of return on "project." Cost of capital is the cost of long-term funds for the firm. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Aturan keputusan: Jika NPV > 0, proyek diterima Jika NPV < 0, proyek ditolak. Jika NPV = 0 ??? Jika ada dua proyek yang bersifat saling melengkapi maka proyek yang memiliki NPV lebih besar yang dipilih . http://id.wikipedia.org/wiki/NPV KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS 3. Profitability Index (PI): Ratio dari perbandingan nilai sekarang dari aliran kas masuk dengan dana awal investasi. CFt = cash flow at time t I0 = initial outlay k = required rate of return (cost of capital) Decision Rule: When PI > 1, accept the project. When PI < 1, reject the project. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS 4. Internal Rate of Return (IRR): adalah pengembalian yang diharapkan bagi suatu proyek atau investasi. Mathematically, it is the "discount rate" that equates the present value of cash flows to the initial outlay, so that Decision Rule: Jika IRR > required rate of return, Proyek diterima. Jika IRR < required rate of return, Proyek ditolak. http://id.wikipedia.org/wiki/IRR KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS 5. Modified Internal Rate of Return (MIRR): This is given by: PV Cost = PV of Terminal Value (TV) I0 I1 I2 Ij CFt CFt+1 CFt+2 CFn-t |--------|--------|----------|----------------|-------|--------|-----------------| 0 1 2 j t t+1 t+2 n where: It = cash outflows, COF; CFt = cash inflows KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Incremental Cash Flows and Factors Affecting Cash Flows Tujuan umum pemegang saham adalah memaksimalkan kesejahteraan. Pemegang saham sangat tertarik dengan adanya berapa banyak tambahan lembar-lembar rupiah yang diterima dimasa yang datang dari kegiatan investasi yang dilakukan hari ini. Oleh karena itu bukan inkremental nya, tetapi apa yang terjadi. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Dampak “Incremental” and “Total” Cash Flows bagi Peursahaan Mempengaruhi tingkat penjualan yang telah berjalan selama ini. Cannibalization: atau kanibalisasi produk baru terhadap produk lama. Contoh Produk subsitusi di host country akan mempengaruhi volume ekspor perusahaan induk. Sales Creation: Investasi baru akan menciptakan tambahan volume penjualan bagi produk yang ada. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Transfer Pricing: Harga barang atau jasa yang berlaku pada proses perdagangan antara induk perusahaan dengan anak perusahaan (internalitas). Kesimpulannya harga yang berlaku di setiap proyek atau investasi baru baik harga bahan atau harga jual harus berpedoman pada harga pasar bukan harga transfer. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Factor-Factor lain: Opportunity Costs: Biaya Proyek harus meliputi biaya ekonomi senyatanya bagi setiap sumber daya yang dibutuhkan proyek atau investasi. Sunk Costs: Seluruh biaya yang hrus dikeluarkan walaupun proyek tadi jadi dijalankan atau dibatalkan, e.g., site analysis, feasibility studies, etc. Exclude sunk costs from cost considerations. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Fees and Royalties: Fee dan royalti sebagai biaya dalam proyek tetapi sebagai keuntungan bagi perusahaan induk. e.g., legal counsel, power, lighting, heat, rent, R&D, H.Q. cost, and management costs, etc. A project should be charged only for additional expenditures that are attributable to the project. In general, incremental cash flows associated with an investment can be found by subtracting worldwide corporate cash flows without the new investment from "with" the new investment cash flows. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Foreign Complexities and Opportunities Capital budgeting analysis for a foreign project is considerably more complex than domestic case for a number of reasons including: Parent Cash Flows Vs. Project Cash Flows: Cash flows perusahaan induk acapkali tergantung pada format pembiayaan jadi cash flow nya secara jelas dipisahkan antara keputusan pembiayaan dengan keputusan investasi tetapi Capital budgeting bagi anak perusahaan akan secara jelas bahwa aktivitas nya berupa investasi. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Remittance of funds to parent is compounded by differences in tax systems and financial markets and institutions as well as legal and political constraints on funds movement. Cash flows from affiliate to parent can be generated by an array of operational, financial or non-financial payments, e.g., fees, royalties, transfer pricing, etc. Different rates of national inflation introduce changes in competitive position. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Unanticipated changes in foreign exchange rates have direct and indirect effects on costs, prices, and sales volume. Transaction across segmented national markets may create opportunities for financial gains or lead to additional costs. Benefits of enhanced global service network. Diversification of production facilities. Market diversification. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Availability of host government subsidized loans may complicate capital structure decisions and the appropriate WACC. Political risks must be evaluated, and costs may be involved in the management of political risks. Terminal value is more difficult to estimate, i.e., uncertain salvage value. Foreign complexities must be “quantified” as modifications to either expected cash flows or the rate of discount. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

International Capital Budgeting Decision Model Multinational capital budgeting problems can be solved by appealing to the principle of “value additivity”. This states that the whole value of a project is equal to the sum of its parts. The Adjusted Present Value (APV) rule divides up the present value terms and focuses on each component to maximize the development and use of information. Each present value term employs an appropriate discount rate for its level of systematic risk. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Lessard (1981) extends this approach to deal with foreign investment projects as follows: APV= -PV of capital outlays +PV of remittable after tax operating cash flows +PV of tax savings from depreciation +PV of financial subsidies +PV of other tax savings +PV of extra (indirect) remittances +PV of project’s contribution to corporate debt capacity +PV of residual plant and equipment (salvage) Multinational Capital Budgeting Examples. (See sample problem set III, part B) KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Multinational Cost of Capital & Capital Structure A firm’s capital consists of: Laba ditahan (Retained Earnings) Penyertaan modal/Equity (existing or newly issued) Saham istimewa (Preferred Stock) Utang / Debt (borrowed funds) The firm’s cost of retained earnings reflects the opportunity cost - what existing shareholders could have earned if they invested the funds themselves. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS The firm’s cost of new equity also reflects an opportunity cost - what the new shareholders could have earned if they had invested their funds elsewhere. The cost of new equity exceeds the cost of retained earnings by the floatation costs. The firm’s cost of debt increases with the level of debt. Increases in the level of debt also increases the probability of default. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Tax deductibility of interest payments on debts enhances the attractiveness of debt financing. A firm must maintain a proper balance between the tax advantage of debt and its disadvantage (greater probability of bankruptcy). The firm’s weighted average cost of capital (WACC) can be computed as: (Total Capital = Debt + Equity + Pref. Stock) WACC = WdKd (1-t) + WpKp + WeKe KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Asumsi yang berlaku modal di dapat dari utang dan penyertaan modal, maka rumus WACC : where: D = Proportion of capital (D+E) made up of debt, E = The proportion of equity, Kd = Cost of debt, Ke = Cost of Equity and t = tax rate. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Factor yang mempengaruhi Cost of Capital Multinasional Size of the Firm: Perusahaan besar selalu jumlah pinjamannya juga besar. Penerbitan saham atau obligasi dengan jumlah yang besar akan memperkecil tingkat biaya modal (cost of capital). Access to International Capital Markets: Akses ke Pasar modal internasional MNE akan memperoleh tingkat biaya modal yang lebih murah dibanding memanfaatkan sumber pendanaan di negara lokal (host country) International Diversification: Keanekaragaman aliran kas dari berbagai sumber pendanaan menghasilkan stabilisasi aliran kas bagi MNE dan pada akhirnya akan terhindar dari problem likuiditas. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Exposure to Exchange Rate Risk: Perusahaan harus mampu mengelola valuta asing agar terhindar dari risiko nilai tukar. Dengan cara mengelola bermacam-macam valuta asing akan menghilangkan risiko nilai tukar Exposure to Country Risks: Oleh karena risiko negara sulit di diversifikasikan, maka setial kenaikan volatilitas aliran kas akan menghaailkan biaya modal meingkat. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Cost of Capital Across Countries: Variasi dalam biaya modal antar negara, membuat MNE mampu melakukan bisnis internasional dengan memanfaat pendanaan internasional. Perbedaan tingkat biaya modal antar negara membuat MNE dapat memilih tingkat biaya yang efisien di beberapa negara untuk membiayai struktur modalnya. Differences in the Risk-Free Interest Rate: T-bills (Treasury Bills) 3 bulanan adalah sebuah pendanaan yang bebas risiko (The risk-free rate) Faktor lain yang menentukan tinggi rendahnya risiko bagi MNE adalah faktor penawaran-permintaan di masing-masing negara, undang-undang perpajakan, kebijakan moneter, faktor demografi dan kondisi perekonomian. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Differences in the Risk Premium: The risk premium is affected by the relationship between borrowers and creditors (e.g.. Japan’s Keiretsu http://id.wikipedia.org/wiki/Keiretsu ), and kecenderungan pemerintah untuk campur tangan dan menyelamatkan perusahaan yang sakit atau gagal (bandingkan AS untuk Inggris.) Also firms in some countries have greater borrowing capacity because creditors are tolerant of higher degrees of financial leverage (e.g. Japanese and German firms have higher degrees of financial leverage than US. firms). Country Differences in the Cost of Equity: The cost of equity is related to investment opportunities in each country. In a country with many investment opportunities, potential returns may be relatively high resulting in a relatively high opportunity cost of funds. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS International Differences in Cost of Equity Capital Effectiveness of a Country’s Legal Institutions: Sistem hukum yang berfungsi dengan baik akan melindungi investor, mengurangi biaya monitoring dan penegakan hukum untuk investor, mengurangi biaya perusahaan 'modal dengan cara mempermudah investor dalam segala pengurusan yang berhubunga dengan perizinan Differences in Securities Regulation: Persyaratan yang ketat , dan penegakan, pengungkapan keuangan tertentu membantu mengurangi asymmetric information antara perusahaan dengan kalangan investor. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Multinational Capital Structure: Some of the firm specific characteristics that affect MNCs’ capital structure include: Stability of MNCs cash flows. MNC credit risk - a MNC with assets acceptable as collateral has greater access to loans. Tingkat laba ditahan. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Influence of Country Characteristics Entry and cross-border barriers to investing. Interest rates in host countries are affected by capital controls, tax rates & country risks. A MNC’s preference for debt or equity may depend on relative costs in a particular country. Host country currency innovations. Country risks. Relative tax laws. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Multinational Target Capital Structure Target struktur modal MNC dapat berbeda dengan negara host dengan cara konsolidasi. yaitu, MNC dapat mengabaikan "lokal" target struktur modal dalam mendukung target struktur modal "global". KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Partially Owned Subsidiaries : When MNCs allow (or are forced to allow) foreign subsidiaries to issue stocks to local investors, such a subsidiary becomes partially owned by the parent. This can affect MNCs’ capital structure. In some countries, a MNC will be allowed to establish a subsidiary only if it meets the minimum percentage of ownership by local investors. A minority interest in a subsidiary by local investors may, however, offer some protection against threats of any adverse action by the host government. KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

Capital Structure Across Countries Firms in Japan and Germany tend to use a higher degree of financial leverage than U.S or U.K firms. The system of interlocking ownership in Japan may encourage a greater use of leverage. Other International Factors…… Stock restrictions in host countries Interests rates in host countries Strength of host country currencies Country risk in host countries Tax laws in host countries KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS

KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS Pertanyaan 1: The following are major factors in multinational cost of capital except: Size of the firm Access to international capital markets International diversification of firm Exposure to exchange risk Exposure to country risk Pertanyaan 2: Which of the following is not a factor accounting for variations in the cost of capital across countries: Differences in risk free interest rate Differences in risk premium Differences in cost of equity KEUANGAN INTERNASIONAL MODIFIED BY ZAINUL MUCHLAS