Eka Rosalina

Type of the article: Research Article

Abstract
Investment efficiency is a critical issue in emerging markets, as information asymmetry and agency conflicts can lead firms to make investments that deviate from optimal levels. This study aims to examine the impact of executive characteristics specifically executive experience and executive size and earnings smoothing on investment efficiency and debt maturity, while also investigating the mediating role of debt maturity. The study utilizes an unbalanced panel dataset of manufacturing firms listed on the Indonesia Stock Exchange from 2015 to 2024. Following data selection and outlier handling, the final sample comprises 275 observations from 87 firms. Analysis was conducted using panel data regression in STATA 17 and the Sobel test to assess mediation effects. The results indicate that executive experience and executive size both have a positive and significant impact on investment efficiency; earning smoothing also shows a significant positive effect. However, executive experience, executive size, and earning smoothing do not significantly affect debt maturity, nor does debt maturity significantly influence investment efficiency. The Sobel test reveals that debt maturity provides only marginal evidence of mediation regarding the relationship between executive size and investment efficiency, and it does not mediate the relationships of executive experience or earning smoothing with investment efficiency. These findings suggest that investment efficiency is driven more by internal capacity and governance mechanisms than by debt maturity.

Acknowledgment
This research was conducted without financial support from any public, commercial, or nonprofit funding agency.