Financial Ratios and Corporate Governance's Impact on Financial Performance in the Indonesian  Stock Market: The Case in Manufacturing Industry

Rahmawati, Ika Yustina; Najmudin, Najmudin; Adawiyah, Wiwiek Robiatul; Jayanti, Esih; Berniz, Yulis Maulida; Utami, Yuni

doi:10.9734/ajeba/2023/v23i171037

Cited by 2 publications

(4 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to research, sales growth affects profitability [4]. Thus, the following hypothesis can be drawn:…”

Section: Sales Growth and Profitabilitymentioning

confidence: 99%

“…Sales growth is a calculation made to measure the company's sales growth rate this year minus the previous year, divided by the last year's sales Fransisca & Widjaja, [4] calculated by the formula:…”

Section: F Sales Growth (X6)mentioning

confidence: 99%

“…The achievement of targets in the company is undoubtedly not avoided from funding through a Capital Structure (CS) that has a permanent nature, including short-term debt and company equity. This funding is carried out by companies in the form of long and short-term financing related to dividends taken by the company [4].…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Analysis of Corporate Financial Performance in Indonesia’s Transportation and Logistic Sector

Herdiana,

Rahmawati,

Tubastuvi

et al. 2023

AJEBA

View full text Add to dashboard Cite

Aims: To examine the effect of the board of directors, board of commissioners, independent board of commissioners, capital structure, liquidity, and sales growth on the company's profitability. Study Design: Dependent variable: profitability, independent variables: board of directors, board of commissioners, independent board of commissioners, capital structure, liquidity, and sales growth. Place and Duration of Study: The research was conducted on transportation and logistics sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022. Methodology: The method used in data collection is study uses purposive sampling that produce 56 company data from 148 data by caltulating them using several tests: descriptive statistical, chow, hausman, lagrange multiplier, and regression using the Eviews 12 analysis tool. Results: The analysis test showed the results chow test with values of 0.009<0.05(FEM), the results of hausman test of 0.627>0.05(REM), and the LM test of 0.149>0.05(CEM) and the results of regression test in the hypothesis test on the variables of the board of directors resulted in a probability value of 0.000<0.05(accepted) can affect the proditability, on the variables of the board of commissioners(0.710), independent board of commissioners(0.119), Capital Structure(0.200), liquidity(0.196), sales growth(0.218) and showing probability value>0.05(not accepted) do not affect the company's profitability. Conclusion: The result showed that transportation and logistic sector at company’s profit level can be affected by the mangement of directors which affects the increase in profitability. However, with the increase in the number of commissioners, independent commissioners, the many burdens and obligations borne, the company cannot achieve maximum profits. The increase in sales growth doesn’t affect the company's profits because of the enormous debt and operating costs that must be paid to meet its operational needs. Thus the company can provide signals or information according to signaling theory to investors to compare and make investment decisions in the company.

show abstract

“…According to research, sales growth affects profitability [4]. Thus, the following hypothesis can be drawn:…”

Section: Sales Growth and Profitabilitymentioning

confidence: 99%

Section: F Sales Growth (X6)mentioning

confidence: 99%

See 1 more Smart Citation

Analysis of Corporate Financial Performance in Indonesia’s Transportation and Logistic Sector

Herdiana,

Rahmawati,

Tubastuvi

et al. 2023

AJEBA

View full text Add to dashboard Cite

show abstract

“…The Company uses these funds to finance its assets. Does not include other funding sources such as capital or equity [23]. When a business has a high amount of Debt, then interest financing obligations will be heavier, and this condition will impact the inability of total assets to meet existing obligations [8].…”

Section: H1: Profitability Affects Financial Distress Negativelymentioning

confidence: 99%

Unravelling Financial Distress: The Impact of Profitability, Leverage, Liquidity, Operating Capacity and Company Size

Utami,

Rahmawati,

Bagis

et al. 2023

AJEBA

View full text Add to dashboard Cite

Aims: To Establish effect of Profitability, Leverage, Liquidity, Operating Capacity, and Company Size of Transportation & Logistic Companies Listed in Indonesia Stock Exchange (IDX). Study Design: The population of this study consists of 37 transportation and logistics companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2022. Data from this study comes from the company’s annual report. Place and Duration of Study: Transportation firms that are listed from 2018 to 2022 on the Indonesia Stock Exchange (BEI) Methodology: In this research comes from the Company's annual report. The method used by the data is purposive sampling. For this investigation consisted of 22 companies where the sample of 63 businesses because it was unbalanced data for analysis used descriptive static analysis, logistic regression analysis, model feasibility test, and hypothesis test tested using the Eviews 13 analysis tool. Results: The results of the test analysis if the p-value is 0.03 < 0.05 with a positive coefficient value of 43.19423, then this shows that ROA has a significant positive effect on financial distress. The results of the test analysis if the p-value is 0.07 > 0.05, then this shows that DER has no effect on financial distress. The results of the test analysis if the p-value is 0.60 > 0.05, then this shows that CR has no effect on financial distress. The results of the test analysis if the p-value is 0.35 > 0.05, then this shows that TATO has no effect on financial distress. The results of the test analysis if the p-value is 0.04 < 0.05 with a negative coefficient value of -1.566118, then this shows that Company Size has a significant negative effect on financial distress. Conclusion: This quantitative study assesses the impact of profitability, leverage, liquidity, operating capacity, and company size on the financial distress of transportation and logistics companies using numerical data to test the hypothesis. Specifically, it evaluates the relationship between profitability, leverage, liquidity, operating capacity, and company size to financial distress.

show abstract

Financial Ratios and Corporate Governance's Impact on Financial Performance in the Indonesian Stock Market: The Case in Manufacturing Industry

Cited by 2 publications

References 8 publications

Analysis of Corporate Financial Performance in Indonesia’s Transportation and Logistic Sector

Analysis of Corporate Financial Performance in Indonesia’s Transportation and Logistic Sector

Unravelling Financial Distress: The Impact of Profitability, Leverage, Liquidity, Operating Capacity and Company Size

Contact Info

Product

Resources

About