Company Growth Research Articles

Healthcare Industries' Capital Structure Determinants: Evident Listed Companies on the Indonesian Stock Exchang

The purpose of this paper is to examine the capital structure and its determinants within the Health Industry in Indonesia. Utilizing a panel data model, this study analyzes the financial data of Healthcare Companies listed on the Indonesia Stock Exchange, covering the period from 2017 to 2023, with data processing conducted using the Evieus Software version 13 application. The findings confirm the dominant role of firm-specific factors, indicating that Company Growth, Profitability, Asset Tangibility, and Revenue Volatility significantly affect Book Leverage (BL), while Company Size has a notable effect of 17%. This research provides a novel contribution by focusing on the capital structure analysis specialized in the Pharmaceutical Industry in Indonesia, an area that has not been extensively explored before

Pengaruh Leverage, Profitabilitas Dan Umur Perusahaan Terhadap Pertumbuhan Laba Pada Perusahaan Food And Beverage Yang Terdaftar Di Bursa Efek Indonesia Periode 2019-2021

At the end of December 2019, there was an outbreak of a virus called Coronavirus19 (COVID-19). Where this virus causes economic instability, one of which is in Indonesia. Economic instability due to the pandemic has impacted the performance of several companies, one of which is a food and beverage company. One of the parameters to see the performance of a company is profit. Profit growth can be influenced by several factors, one of which is the level of leverage, company age, sales level. This study aims to examine the effect of leverage, profitability and company age on profit growth in food and beverage companies listed on the Indonesian stock exchange for the 2019-2021 period. The population in this study were 72 companies. Determination of the sample used in this study is purposive sampling technique, namely the technique of determining the sample using certain criteria or considerations. The number of samples used in this study was based on a purposive sampling technique of 63 observations. The report data used in the research is the 2019-2021 annual financial reports. The data analysis technique used is multiple linear regression analysis. The results of the study state that leverage has no significant effect on profit growth in food and beverages companies, profitability has a significant negative effect on profit growth in food and beverages companies, company age has no significant effect on profit growth in food and beverages companies

Pengaruh Return on Asset, Current Ratio, dan Debt to Equity Ratio Terhadap Harga Saham dengan Firm Size Sebagai Variabel Moderasi (Pada Perusahaan Pertambangan Subsektor Minyak dan Gas Bumi yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2023)

This research aims to determine the effect of Return On Assets (ROA), Current Ratio, Debt to Equity Ratio, on Stock Prices with Firm Size as a moderating variable. The research population of oil and gas subsector growth companies registered on the IDX 2016-2023 is 35 companies. The sampling technique used in this research is the purposive sampling method and based on the technique, the number of samples that meet the requirements is 8 companies with a period of 8 years (2016-2023), the sample is 44 samples. The analytical method used is multiple linear regression analysis. The results of data analysis show that there is a significant influence between Current Ratio and DER, while there is no influence between ROA and Share Prices. The results of the moderation analysis show that ROA and Current Ratio have no moderating effect on share prices, while DER has a moderating effect on share prices. Key words: Return On Asset (ROA), Current Ratio, Debt to Equity Ratio, Stock Prices and Firm Size

Unveiling Firm Value Dynamics Amidst COVID-19

This research investigates the impact of company size, leverage, company growth, and profitability on firm value in the food and beverage sector amidst the COVID-19 pandemic. Utilizing Partial Least Square regression and data from Indonesia Stock Exchange-listed companies, the study finds that company size, leverage, and profitability significantly influence firm value, while company growth does not. Moreover, company size affects profitability, while leverage and company growth do not notably impact profitability. Profitability serves as an intermediary between company size and firm value but does not mediate the relationship between leverage, company growth, and firm value. These findings highlight the importance of considering multiple factors concurrently in assessing firm value, particularly in times of crisis, offering valuable insights for managerial decision-making and policy formulation to enhance business resilience and sustainability. Highlights: 1. Analyzing firm value during COVID-19, emphasizing company size and profitability.2. Company size, leverage, and profitability significantly influence firm value.3. Profitability acts as a mediator, impacting firm value dynamics. Keywords: Firm value, COVID-19, Company factors, Profitability, Partial Least Square regression

The Influence of Capital Structure, Company Growth and Company Value on Share Prices in Coal Sub-Sector Companies Listed on the Indonesian Stock Exchange 2018-2023

This study aims to empirically investigate the impact of Capital Structure, Company Growth, and Company Value on stock prices. Employing a quantitative descriptive research method with a verificative approach, the study utilizes panel data regression analysis to examine these relationships. The research focuses on Coal Sub-Sector Companies listed on the Indonesia Stock Exchange from 2018 to 2023, encompassing a sample of 12 companies. The findings reveal that Capital Structure negatively influences stock prices, indicating that higher debt levels may detract from stock value. Conversely, Company Growth is found to have no significant effect on stock prices, suggesting that growth metrics do not necessarily translate to market valuation in this sector. In contrast, Company Value exerts a positive impact on stock prices, demonstrating that higher valuation metrics are associated with increased stock prices. These results provide valuable insights for investors and stakeholders in the coal sub-sector, highlighting the critical factors that drive stock price movements and offering a basis for more informed investment decisions.

Resource-based typology to facilitate sustainable growth of agricultural start-up companies in ASEAN

Abstract Startup companies have had a significant influence on the growth of the economy. Nevertheless, they are prone to failure. Resources, both tangible and intangible, are essential for the sustainable growth of start-up companies. The main objective of this study is to gain a thorough comprehension of the classification of agricultural startup companies in ASEAN countries, taking into account their available resources. This study employs data sourced from Crunchbase, a comprehensive database including information on 201 agricultural startup companies operating in ASEAN countries. The study primarily focuses on analyzing two main variables: tangible and intangible sources. The study employed the K-means clustering algorithm to analyze the attributes of agricultural startup companies. The study’s results indicate that startup companies in ASEAN countries can be categorized into three distinct clusters. The first cluster is made up of players who have a great deal of experience and who have the highest levels of income, funding, and personnel count. The second cluster is made up of players with a moderate amount of experience who have a low CB Rank, Funding, and Estimated Revenue, but they have a moderate number of employees. Inexperienced players make up the third cluster, which has a higher total quantity of investment and income but a very small number of employees. This group is characterized by greater total investment and income.

Technological Innovations in Agricultural Firms in Bulgaria: What is the Role of EU Funds?

Abstract The value chains that originate from agricultural production across the globe are of critical importance to achieving the Sustainable Development Goals. In the context of Bulgaria on the country level, the gross capital formation of agricutural firms has experienced an incredible increase of 95% because of buying machines and equioments during the years 2018 and 2022. Our research project focuses on analyzing the effects of governmental financial support on the growth and competitiveness of agricultural companies. For the study, data on firms that were financially aided to buy agricultural machinery between 2021 and 2023 was derived from the eufund.bg database. It was discovered that medium and large businesses are two to three times more likely to receive funding from the EU compared to the micro-enterprises. The study identified a significant North-South divide signaling a positive impact of funding to the less developed regions and in particular the Northwest region. Furthermore, the crucial role of the EU funding in enhancing the growth of the agricultural sector are emphasized by the study. The study identifies gaps in the efficacy of support programs and policy interventions in enhancing innovations in the agricultural sector. The study also offers insights on specific impacts on farm productivity, profitability, environmental sustainability, and socio-economic implications for the future studies.

Internationalisation of Network Enterprises from the SME Sector in Poland in 2019-2022 with a Focus on the Łódź Voivodeship

Abstract The aim of this article is to discuss the problem of internationalisation of small and mediumsized enterprises sector organisations in Poland in the years 2019-2022 with a particular focus on the Łódź Voivodeship (9th position from the point of view of entrepreneurship in the regions of Poland). The first part of the article provides the theoretical background of internationalisation of enterprises. The second part contains an analysis of empirical data on the basis of author’s own research and determinants of company growth relating to the internationalisation of the small and medium-sized enterprises sector in Poland in the years 2019-2022 with a particular focus on the Łódź Voivodeship. The main research hypothesis in the article is that the majority of enterprises in the small and medium-sized enterprises sector in the Łódź Voivodeship conduct international activities, although the geographic range of the (international) activities of both transport-shipment-logistics companies and companies from the production and service industry (outside the transport-shipment-logisitcs industry), does not translate into a high share products/services ordered on the international market to the total quantity of products/services ordered by these companies. The article was written on the basis of the literature on the subject, survey results and reports of the Polish Agency for Enterprise Development and documents of the Marshal's Office of the Łódź Voivodeship.

Location, Technological Level, and Partnerships as Conditions for Company Growth

Location, Technological Level, and Partnerships as Conditions for Company Growth

Strategi Dividen yang Efektif: Memahami Keseimbangan antara Kondisi Keuangan dan Peluang Investasi untuk Pertumbuhan Laba Perusahaan

In complex business dynamics, dividend policy strategy is a key element that influences company growth and competitiveness. An effective balance between financial conditions and investment opportunities is the main focus to achieve sustainable profit growth. This research aims to understand effective dividend strategies by exploring the optimal balance between a company's financial condition and investment opportunities as a critical step towards sustainable profit growth. The type of research used is associative quantitative. The data used is secondary data obtained from the Indonesian Stock Exchange for the research period. Sample selection was carried out based on the purposive sampling method. This research reveals that an effective dividend strategy requires a deep understanding of the balance between finance and investment. A dividend policy that is appropriate to financial conditions and supports investment opportunities can make a positive contribution to company profit growth.

The Effect of Institutional Ownership, Leverage, and Company Growth on the Value of Companies with Financial Distress as an Intervening Variable

According to BPS and cnnindonesia.com, Indonesia's economic growth for the initial period of 2020 or quarter 1 was 2.97%, this makes Indonesia's economic growth conditions in 2020 the lowest in the last 20 years. IDX Statistics Report for 2022, the properties & real estate sector in the capital market index is negative and has the lowest ranking, namely -19.11%. This research aims to determine the effect of the GCG variable with a proxy for Institutional ownership, the Leverage variable with a Debt to Equity Ratio proxy, and the Company Growth variable with a sales growth proxy on Company Value with a Tobin's q proxy with Financial Distress as an intervening variable. The total sample for this research is the properties and real estate sector companies listed on the IDX in 2018 - 2022, totaling 40 issuers. The analysis method used is multiple linear regression, classical assumption test, F test, T test, GLM mediation test, using the Jamovi data processing tool. The research results of institutional ownership, DER and Sales Growth influence company value, institutional ownership and DER influence financial distress. Financial Distress is unable to mediate the relationship between Sales Growth and Company Value.

Company Growth, Company Size, Capital Structure and Profitability on Company Value in IDX-Listed Manufacturing Companies

This study aims to examine the effect of company growth, company size (SIZE), capital structure, (DER), and profitability (ROE) on company value (PBV) in manufacturing companies listed on the Indonesia Stock Exchange. The sample consisted of 194 companies, with 49 selected using purposive sampling techniques. The study used multiple linear regression analysis and company financial statement data from 2018-2020. The coefficient of determination function is to measure how much influence between Company Growth, Company Size, Capital Structure, and Profitability on Company Value. The results of statistical testing show that the company's growth partially affects the value of the company. The size of a large or small company will not be able to affect its value. It also shows that if the company increasingly uses long-term debt to finance its assets, it can increase the value.

The Influence of Profitability, Liquidity, and Growth of Company on Dividend Policy (Study of Manufacturing Industrial Listed Company on the Indonesian Stock Exchange Period 2018 - 2022)

The Influence of Profitability, Liquidity, and Growth of Company on Dividend Policy (Study of Manufacturing Industrial Listed Company on the Indonesian Stock Exchange Period 2018 - 2022)

The effect of profitability, liquidity, solvency, and company growth on the acceptance of going concern audit opinions on consumer cyclicals companies listed on the IDX in 2019-2022

This study was conducted to obtain empirical evidence on the influence of profitability, liquidity, solvency, and company growth on the acceptance of going concern audit opinions on consumer cyclycals companies listed on the Indonesia Stock Exchange (IDX) in 2019-2022. The study was conducted with an associative quantitative approach. The type of data used is secondary data in the form of company financial statements obtained from the official IDX website. There were 64 samples taken by purposive sampling technique. This study used logistic regression analysis techniques. The results showed that the profitability, solvency and growth of the company partially did not affect the acceptance of the going concern audit opinion, while liquidity partially affected the acceptance of the going concern audit opinion and the profitability, liquidity, solvency, and growth of the company simultaneously affected the acceptance of the going concern audit opinion.

DIRECTOR'S NATIONALITY DIVERSITY AND COMPANY PERFORMANCE: THE EVIDENCE FROM EMERGING MARKET

This study describes the diversity of directors' nationality from company attributes: company leverage, growth, size, age, and sub-sector. This study also analyses the association between directors' nationality diversity and the performance of Indonesia's listed companies using two measurements: ROA and ROS (accounting performance) and Stock return and Tobin’s Q (market performance). This study used 3,290 observations in 235 companies (from 2004 to 2017). As a result, the level of director nationality diversity varies based on the company size (large vs. small), company age (old vs. young), company growth (high vs. low), company leverage (high vs. low), company sub-sector (central vs. manufacturing vs. trading & service sub-sector). In addition, the diversity of the supervisory board nationality is negatively related to the ROA and Tobin’s Q and positively associated with stock return. The company breaks the negative effect of supervisory board nationality diversity by reducing the periods foreign directors need to familiarise themselves with newly discovered circumstances, such as culture, systems, and language. The company suggests increasing the supervisory board nationality diversity regarding the stock return as detailed theoretical and practical implications.

The influence of profitability, liquidity and company growth on share prices in construction service companies listed on the Idx for the 2019-2022 period

This research was conducted by a Construction Services Company listed on the Indonesia Stock Exchange. The purpose of the study is to determine and analyze how the effect of profitability is proxied by the price earning ratio, liquidity proxied by the current ratio and company growth proxied by the assets growth ratio (AGR) on stock prices proxied by closing prices. This research was conducted from 2019 to 2022. The number until this study was 16 companies with a period of 4 years so that the total was up to 64 financial statements. This study used quantitative data processed with the Eviews application with a panel data linear regression model. The data source used secondary data taken from the Indonesia Stock Exchange website. The results showed that partially the price earning ratio (PER) had a positive and significant effect on stock prices. The current ratio (CR) has a positive but not significant effect on stock prices. Asset growt ratio (AGR) has a positive and significant effect on stock prices. While simultaneously the price earning ratio (PER), current ratio (CR) and assets growt ratio (AGR) simultaneously, have a positive and significant effect on stock prices.

The effect of company growth on sustainable performance: A moderating perspective of stock mispricing in Indonesia and Japan

The adoption of environmental, social, and governance (ESG) measures to realize socially responsible companies continues to accelerate, becoming a trend amid global uncertainty due to climate change and the COVID-19 pandemic. This study aims to examine the effect of company growth on sustainable performance, moderated by company stock mispricing in Indonesia and Japan, representing a developing and a developed country, respectively. This study uses panel data regression, namely the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM), to test hypotheses. With a total of 42 observations from companies listed on the Indonesia Stock Exchange (IDX) and 112 observations from companies listed on the Japan Stock Exchange (JPX) during 2019–2020, the results show that a company’s growth has a negative effect on sustainable performance in Indonesia, while in Japan it has no effect. Stock mispricing strengthens the negative effect of company growth on sustainable performance in Indonesia but has no effect in Japan. This study found that companies in Indonesia place more emphasis on internal growth than on ESG implementation compared to companies in Japan. The implication of this study is that the implementation of ESG shows different dynamics when comparing two countries. Indonesia needs to evaluate the regulations governing socially responsible businesses in order to encourage further improvement of ESG performance. Meanwhile, in Japan, ESG practices have been running voluntarily, so enforcement from regulators is relatively less necessary.

Debt Restructuring and Financial Performance SOEs in Indonesia

This study aims to examine the effect of debt restructuring on the financial performance of state-owned companies in Indonesia. Debt restructuring is carried out to provide support in the form of leeway for companies that are experiencing financial difficulties so that they can get out of the problem within a certain period. The samples taken and selected in this study were based on purposive sampling for SOEs companies listed on the Indonesia Stock Exchange with financial statement data for the period 2018-2022. There are three research models tested using multiple regression analysis. The results showed that there was a decrease in financial performance after the company restructured its debt, both financial performance as measured by profitability, liquidity and sustainable growth rate. The decline in financial performance can be caused, among others, by the use of restructuring methods by extending the maturity of debt payments (rescheduling) which causes a decrease in the amount of short-term debt, including affecting the decline in the company's profit growth.

FACTORS AFFECTING FIRM VALUE WITH DIVIDEND POLICY AS MODERATION

The purpose of this study was to analyze how profitability, liquidity, company growth, company age and leverage affect firm value with dividend policy as a moderating variable in companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022. The total research sample was taken from companies with the consumer non-cyclicals sector selected by purposive sampling method. The data in this study are secondary data in the form of financial reports taken from the official IDX website. The total company data used in accordance with the research criteria were 81 research samples and after outliers became 65 research samples. The data of this study were analysed using multiple linear regression analysis techniques processed with SPSS (Statistical Product and Service Solutions) software version 26. The results of this study indicate that profitability and dividend policy have a significant positive effect on firm value. Liquidity, company growth and company age have no significant effect on firm value. Dividend policy does not moderate the effect of profitability, liquidity and company growth on firm value. This study provides important knowledge to company management to pay attention to factors that affect firm value.

Determinants of Capital Structure in Indonesia's Food and Beverage Sector

This study examines the impact of company growth, profitability, and asset structure on the capital structure of food and beverage companies listed on the Indonesia Stock Exchange from 2015 to 2019. Using a purposive sampling method, 8 companies were analyzed through SPSS. The results indicate that company growth, profitability, and asset structure significantly influence capital structure. These findings offer valuable insights for financial managers in optimizing capital structure and contribute to the academic understanding of capital structure determinants in emerging markets. Highlight: Significant impact on capital structure by growth, profitability, asset structure. Analyzed food and beverage companies on Indonesia Stock Exchange, 2015-2019. Provides financial managers insights for optimizing capital structure decisions. Keyword: company growth, profitability, asset structure, capital structure, food and beverage