Factors Affecting the Financial Performance of Property Andreal Estate Companies Listed at Indonesia Stock Exchange

Abstract

Financial performance is one of the factors used by investors in buying shares. For companies, improving financial performance is a must in order to keep the company's stock attractive to investors. Financial statements published by the company are a reflection of the company's financial performance. These financial statements are the result of the accounting process that is intended to provide the financial information of a company. The financial information can be used by users for making investment decisions. Performance is the result of the fulfillment of the tasks assigned. Company performance describes how individualsin the company tries to achieve a goal. Company performance illustrates the magnitude of the results in a process that has been achieved compared with the company's goal. The purpose of this study is to find out factors determining financial performance. The objects of this study are property and real estate companies listed on the Indonesia Stock Exchange (IDX) during the period of 2007-2012. Data for this study stems from secondary data gathered by analyzing financial statement of the sample companies. The data is then analyzed with Eviews 7.2 Panel Data Regression Analysis. The research findings can be summarized as follows. Variable leverage and Firm Age has an effect on financial performance. Other variables like liquidity, Firm Size, Managerial Ownership and Block holder Ownership have no effect on financial performance.

Analysis of Risk Factors Affecting Firms’ Financial Performance—Support for Managerial Decision-Making

“…Financial performance is usually measured through return on assets [2][3][4][5] and return on equity [6][7][8]. Financial performance has been stated in the literature as being affected by certain factors such as liquidity, ownership, age and size [9]. Also, other factors may affect financial performance, such as leverage, productivity, solvency and assets turnover, and these may change in the face of a crisis.…”

An empirical analysis of financial leverage and financial performance: Empirical evidence from Indian listed firms

“…Edi trading in Malaysia. Deitiana and Habibuw (2015) have shown that there is no effect between the liquidity ratio and financial profitability of companies. Although the fast ratio tests the short-term liquidity status of a firm and measures the capacity of a company to fulfill its short-term commitments for the most liquid assets.…”

“…This demonstrates the degree to which the borrowed money is being used by a company (Pandey, 2007). Many previous studies used the leverage ratio to calculate capital structure determinants (Chen et al, 2017;Deitiana & Habibuw, 2015;Mandiefe, 2016;Singh & Sharma, 2016). Bose et al (2017) indicated that leverage ratio was reported as a percentage of total debt separated by total assets.…”

Profitability Performance Analysis: The Evidence From Private Telecommunication Firms in Malaysia

“…They agreed with the assertion made by the theory of comparative market power that large size firms were generally competent and were able to leverage their market power by using their products to generate the highest revenues. Conversely, Deitiana and Habibuw (2015) in their analysis on the size of selected organizations discovered that size was not considered to be a key element of organizational efficiency. However, Zadeh and Eskandari (2012) did argue that firm size did have a different quality and quantity for different countries.…”