jbm@fe.unpad.ac.id
Dear. Dr. Sulaeman Rahman Nidar:

I believe that you would serve as an excellent reviewer of the manuscript, "CREATING FIRM VALUE: LINKING DEMAND UNCERTAINTY, ADAPTATION VERSUS REPLACEMENT INVESTMENT AND RISK," which has been submitted to Jurnal Bisnis dan Manajemen. The submission's abstract is inserted below, and I hope that you will consider undertaking this important task for us.

Please log into the journal web site by 2020-04-06 to indicate whether you will undertake the review or not, as well as to access the submission and to record your review and recommendation.

The review itself is due 2020-04-13.

Submission URL: http://journal.feb.unpad.ac.id/index.php/jbm/reviewer/submission/69?key=ACCESS_KEY

Thank you for considering this request.

Egi Arvian Firmansyah
SINTA ID: 5985700, Universitas Padjadjaran
egi.firmansyah@unpad.ac.id



"CREATING FIRM VALUE: LINKING DEMAN UNCERTAINTY, ADAPTATION VERSUS REPALCEMENT INVESTMENT AND RISK"

Abstract
Real assets investment can relate to real option. This study is aimed at analysing the effect of demand uncertainty on replacement investment and adaptationinvestmentas supported by manager’s attitude towards risk and the effect of each investment type on firm values. The 352 observation data was collected from companies listed in Indonesia Stock Exchange. The data was analyzed using Path analysis. The research findings prove that demand uncertainty can increase the adaptation investment, which is in contrast to replacement investment. Manager’s attitude in terms of demand uncertainty and adjustment investment is considered as risk taker, while in replacement investment is risk aversion. Effects of the two investment types also differ on firm value. The adaptation investment cannot increase the firm value, while the replacement investment can. The manager has a policy to do or not to do profitable investments to maximize investment returns based on real option policy and to decrease the risk,as the real assets investments are not passive investments. The managers 'attitude towards risk is quasi moderation, both in replacements investment and adaptation investment. This implies that managers' attitude towards risk can be moderator and independent variable.
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Jurnal Bisnis dan Manajemen
http://journal.feb.unpad.ac.id/index.php/jbm