Abstract
This study aims to determine the effect of internationalization and funding decisions on the performance of manufacturing companies in the last 5 (five) years from 2014-2018 registered in Kompas 100. This study uses a descriptive quantitative approach with secondary analysis. The analytical tool used is multiple linear regression analysis with the help of the SPSS 26 program. Based on the results of data analysis, internationalization (foreign sales to total sales) and funding decisions (DER) partially affect the company's performance (Tobin's Q). Simultaneously internationalization and funding decisions affect company performance. This means companies that are able to increase their exports selectively and strategically will have an impact on the company's performance through increasing effective funding to finance export performance so that it will increase revenue and create better profits, overall affecting the performance of a company through better company value, seen by the increasing value of the company's shares. Finally, this article contributes to the knowledge and understanding of companies especially in Indonesia relating to the performance of a company and its impact on the manufacturing industry, challenges, and future prospects. Therefore it is recommended that in order to improve the performance of companies, especially manufacturing industries, companies when appointing managers, management of manufacturing companies must consider factors such as individual knowledge of the manufacturing industry, export-import, and corporate financial management
Highlights
The increasing development of globalization has made companies enter the international world
Some recent research mentions that the implementation of the internationalization strategy requires large investment costs and it can be considered that this internationalization as a large investment project and this causes a negative effect of the impact of this internationalization on company performance in the short term (Altaf & Shah, 2015; Vithessonthi, 2016)
Internationalization of foreign sales to total sales and funding decisions (DER) together have an influence on the company's performance (Tobin's Q) in 8 companies registered in Kompas 100 from 2014-2018
Summary
The increasing development of globalization has made companies enter the international world. Internationalization is the process by which companies establish and conduct transactions with other countries and have an impact on the company's financial condition (Beamish, 1990). The adoption of market-oriented economic reform policies and increased competition in the domestic market have caused many emerging market companies to enter international markets to improve performance (Pattnaik & Elango, 2009). Companies internationalize to expand markets and companies internationalize to remain competitive in the international market to increase company revenues and global competitiveness. Companies that sell higher internationalization show better financial company performance (Mcdougall & Oviatt, 1996). Manufacturing companies are needed because of the increasing needs of Indonesian society
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