Abstract
Abstract: This study investigated the influence of financial ratios on company’s performance in Malaysia and Indonesia F&B industry period 2011 – 2018. The samples generated 37 F&B companies and 12 F&B companies listed on Bursa Malaysia and Indonesia Stock Exchange respectively. By using multiple regression analysis for panel data, the study revealed that CR and DER had no influence on ROA, while TAT and NPM had positive effect on ROA. Also, CR and DER had no influence on ROE in Malaysia F&B industry, but then, these variables had positive effect on ROE in Indonesia F&B industry. While TAT and NPM had positive effect on ROE. This paper is expected to provide beneficial information to related parties to take better consideration on the actual variables having significant effect on company’s ROA and ROE. This paper is also academically expected to be a beneficial reference for further research development.Keywords: F&B Industry, financial ratios, company’s performance, Indonesia, Malaysia. Faktor-Faktor yang Mempengaruhi Kinerja Industri Makanan dan Minuman di Malaysia dan Indonesia Abstrak: Penelitian ini bertujuan untuk menganalisis pengaruh rasio keuangan terhadap kinerja perusahaan di industri makanan dan minuman di Malaysia dan Indonesia periode 2011 - 2018. Sampel penelitian adalah 37 perusahaan makanan dan minuman yang terdaftar di Bursa Malaysia dan 12 perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia. Hasil penelitian dari analisis regresi berganda untuk data panel menunjukkan bahwa CR dan DER tidak berpengaruh terhadap ROA, TAT dan NPM berpengaruh positif terhadap ROA. CR dan DER tidak berpengaruh terhadap ROE pada industri makanan dan minuman di Malaysia, namun berpengaruh positif terhadap ROE di Indonesia. TAT dan NPM berpengaruh positif terhadap ROE. Makalah ini diharapkan dapat memberikan informasi keuangan yang bermanfaat bagi manajemen perusahaan terkait untuk lebih mempertimbangkan variabel aktual yang berpengaruh signifikan terhadap penilaian ROA dan ROE pada perusahaan. Makalah ini juga diharapkan secara akademis dapat menjadi referensi yang bermanfaat untuk pengembangan penelitian selanjutnya.Kata kunci: industri makanan dan minuman, rasio utang terhadap ekuitas, kinerja perusahaan, Indonesia, Malaysia
Highlights
Data The research data is secondary data generated from Bloomberg terminal and annual reports of selected food and beverage (F&B) firms listing in Indonesia Stock Exchange and Bursa Malaysia period 2011
FINDING AND DISCUSSION According to Table 1, based on result of Chow test, the probability of cross-section fixed of return on asset (ROA) and return on equity (ROE) as the dependent variables are less than 5% in both Malaysia and Indonesia F&B industry which means that temporarily fixed effect model (FEM) is used as the panel regression model
This study found that CR and debt to equity ratio (DER) had no significant influence on ROA in both Malaysia and Indonesia F&B industry where this result supports the result of research done by Bhatt & Verghese (2018) which stated that current ratio had no significant impact on profitability and Akenga (2017) which discovered that debt ratio had no significant impact on profitability as well
Summary
The presence of companies in every industry is basically intended to make profit. Currently in the economy of developing countries, the reliable performance of every company in every business sector in the market is certainly notable. By applying the use of method of extended DuPont analysis, the study found that both firm’s net profit margin and asset turnover had significant and positive influence on ROE as the company’s performance It revealed that potentially the ratio of asset turnover and net profit margin reflected the firm’s efficiency and effective cost management respectively in generating and enhancing profit, supported by the proper use and utilization of the related company’s shareholders’ equity. Based on the explanation of independent variables’ influence on dependent variables in this research, as well as supported by the evidences from the previous studies, the research hypothesis can be developed as follows: Ha1: There is significant influence of current ratio (CR), debt to equity ratio (DER), total asset turnover (TAT), and net profit margin (NPM) on return on asset (ROA) both in Malaysian and Indonesian food and beverage (F&B) industry.
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