Manufacturing Companies In Indonesia Research Articles

Firm value: Competitive position and corporate governance during the COVID-19 pandemic

This study aims to investigate the impact of competitive positions and corporate governance on firm values. Corporate governance is proxied by the board of commissioner’s size, the board of commissioner’s independence, institutional ownership, and foreign ownership. The company’s competitive position is determined by its market share. Tobin’s Q is utilized to determine a firm value. In addition, firm size, leverage, and profitability served as control factors. A total of 100 manufacturing companies in Indonesia for the 2019–2021 period were selected as samples using a random sampling technique. Multiple linear regression is utilized for data analysis. The finding shows competition and foreign ownership have no effect on the firm value. While the board size and independence of the board and institutional ownership can impact the firm’s value. The results of this study reveal that during the COVID-19 outbreak, the competitive position cannot aid enterprises in attaining their objective of increasing firm value. This result indicates the anomalous condition affecting the competitive standing during the COVID-19 era. In this period, severe competition poses a challenge to a company’s ability to generate a sustainable income, despite the fact that market conditions and competitive strategy might provide a competitive edge and better performance.

The effects of innovation strategy and good corporate governance on sustainable company performance: The mediating role of value chain

This research investigates how value chains mediate the relationship between innovation strategies and GCG to company performance. The research method used in this study uses an explanatory quantitative approach. The sample used in this study was 60 manufacturing companies in Indonesia. Each questionnaire represents a manufacturing company as a respondent in the survey. Primary data from survey distribution results that passed a validity and reliability test were used in this study. The data obtained were tested using Partial Least Square (PLS). The results show that the value chain acts as a mediator for the influence of innovation strategies and GCG on company performance.

Green Accounting and Disclosure of Sustainability Report on Firm Values in Indonesia

The industry must deal with environmental issues by implementing green accounting and disclosure of sustainability reports. This study aimed to determine the effect of implementing green accounting and disclosure of sustainability reports on firm value. The research was conducted in Indonesia Manufacturing companies with an observation period of 2019-2021. The data analysis technique used is Multiple Linear Regression Analysis. The study results show that applying green accounting has a positive effect on firm value, and disclosure of sustainability reports has a negative effect on firm value. The application of green accounting can significantly increase the company’s value. However, the disclosure of the sustainability report shows a negative result because the company continues to improve its sustainability reports, but the increase is not in line with firm value.

The role of green supply chain management (GSCM) on the competitiveness and performance of Indonesian manufacturing companies

There are several environmental issues that are in the spotlight globally, including: global warming, depletion of the ozone layer, the greenhouse effect, and acid rain. This problem is a concern and needs serious action for human survival. Supply chain activities are suspected of contributing to environmental damage. The purpose of this study is to analyze the effect of Green Supply Chain Management on competitiveness, the effect of Green Supply Chain Management on Performance and the effect of competitiveness on Performance. The study used quantitative methods and research data were obtained using online questionnaires distributed via social media. The research respondents were managers of manufacturing companies in Indonesia and the number of samples used was 540 respondents who were determined using a purposive sampling technique. Data analysis in this study used Structural Equation Modeling (SEM) and software used for data processing by SmartPLS. The results showed that Green Supply Chain Management had a positive and significant effect on competitiveness, Green Supply Chain Management did not have any positive and significant effect on Performance and competitiveness had a positive and significant effect on Performance.

Determining the objective weight of green manufacturing indicators: a case study of the Indonesian manufacturing company

With the growing of environmental issues, manufacturing companies are compelled to improve their performance to reduce resource consumption and environmental pollution. Accordingly, company's performance should be measured according to the green manufacturing indicators. The importance of the indicators must be determined properly aligned with the company's goals and profiles. This study aims to determine the weight of green manufacturing indicators which becomes the critical input for green performance evaluation. Different weighting methods including entropy and CRiteria Importance Through Inter-criteria Correlation (CRITIC), are integrated using Decision-Making Trial and Evaluation Laboratory (DEA) to determine the final weight. A case study of the Indonesian manufacturing company is presented to illustrate the application of the proposed method. The result indicates that process technology, compliance of environmental quality standards, and operational standards are considered critical in green manufacturing.

The Effect of Audit Opinion, Reputation of Public Accounting Firm on Audit Delay with Audit Tenure as Moderation in Indonesian Manufacturing Companies

This study aims to analyze audit opinion and KAP reputation that affect audit delay with audit tenure as a moderator in manufacturing companies listed on the Indonesia Stock Exchange in 2018 – 2020. In this study, audit opinion and KAP reputation are independent variables, and audit delay is a variable. dependent, tenure audit as a moderating variable. The population of this research is all manufacturing companies listed on the Indonesia Stock Exchange in 2018 – 2020. The total sample used is 135 companies which were determined through purposive sampling. The data analysis technique used is multiple linear analysis techniques with the help of the IBM SPSS 25 program. The results of this study indicate that audit opinion has no effect on audit delay. KAP reputation affects audit delay.

Pengaruh profitabilitas, likuiditas, dan price earning ratio terhadap nilai perusahaan

The COVID-19 pandemic has had an impact on the activities of Indonesian manufacturing companies, even though the impact of the COVID-19 pandemic has not directly affected the company's value, which is associated with share prices, but has instead affected company profits. The purpose of this study is to analyze the effect of profitability, liquidity, and price-earnings ratio on firm value. This study uses descriptive statistical methods with data analysis techniques such as multiple regression analysis using the Statistical Package for the Social Sciences (SPSS). In this study, 35 companies met the criteria from a total population of 39 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2021 period were sampled. These results indicate that the profitability variable has no effect on firm value, the liquidity variable has a positive effect on firm value, and the price-earnings ratio has a positive effect on firm value. This research can provide advice to shareholders about paying close attention to the company's value regarding financial and management information published by the company when making decisions about purchasing company shares.

Financial Performance Analysis: Manufacturing Companies In Indonesia Before And Post The 2008 Global Economic Crisis

This study aims to analyze the financial performance of Indonesian manufacturing companies before and after the global economic crisis in 2008. In this study, financial performance is measured by Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). By comparing the average ROA, ROE, and NPM before and after the crisis, the results of the descriptive analysis were tested. It can be seen that ROA, ROE and NPM after the crisis were higher than before the crisis. As a result, post-crisis financial performance has improved compared to before the crisis. Based on the descriptive analysis, it is known that the financial performance of manufacturing companies after the crisis is better than before the crisis. Based on the t test, the results of ROA, ROE and NPM tests were obtained as follows. First, Post-crisis ROA is higher than before the 2008 global economic crisis, and the increase is said to be large. Second, post-crisis return on equity appears to be higher than before the global economic crisis, but this is not statistically significant. Third, post-crisis NPM also appears to be larger than before the crisis, but not statistically significant. The results of the t test show that financial performance as measured by ROA has improved after the crisis compared to before the crisis.

The Factors Influencing Web Disclosure: Evidence from Indonesia Manufacturing Companies Listed in Indonesia Stock Exchange

Capital markets have become increasingly important in driving a country’s economy. The capital markets could perform their role effectively if there is available information for investors. Along with the evolution of information technology, information dissemination by companies could be done more efficiently and promptly manner, for example using corporate websites. However, information dissemination through corporate websites (web disclosure) has not been fully utilized by companies, especially Indonesian companies. Therefore, this research analyzed the factors influencing web disclosure by manufacturing companies in Indonesia. The hypothesis testing was conducted with Partial Least Square Structural Equation Modeling on 54 Indonesian manufacturing companies listed on Indonesia Stock Exchange. The analysis found that company size and corporate governance mechanisms have a positive relationship, and leverage has a negative relationship with web disclosure. The results have also found no relationship between culture and profitability with web disclosure.

Analysis of Hedging and Profit of Indonesian Manufacturing Companies

Analysis of Hedging and Profit of Indonesian Manufacturing Companies

Does CSR increase cost stickiness?

This study aims to provide evidence of corporate social responsibility (CSR) engagement with cost stickiness. Cost stickiness is an asymmetrical cost behavior in which the magnitude of the increase in costs tends to be higher when there is an increase in activity compared to the decrease in costs when there is a decrease in activity. The pattern of changes in costs depends not only on the size of the activity but also on the direction of the change. The research hypothesis states that the involvement of CSR requires the long-term commitment of the company in value creation activities, so it is difficult to suppress committed resources instantly. This study uses employee welfare costs and donations as a proxy for CSR. The research sample is a manufacturing company in Indonesia, with the observation year of 2017–2020. The results of the study prove that there is cost stickiness in selling, administrative, and general costs, and the degree of cost stickiness increases when CSR costs are added to the research model. The results also confirm that changes in activity levels and changes in costs are not always the same. These findings provide new evidence for understanding how CSR affects cost stickiness in manufacturing firms.

Pengaruh Leverage dan Struktur Kepemilikan terhadap Kinerja Perusahaan pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia

Leverage and ownership structure are important aspect on firm performance. Because of that the purpose of this study is to determine the effect of leverage and ownership structure on firm performance. The independent variables in this study are leverage, institutional ownership and foreign ownership. The dependent variable in this study is Firm performance, while the control variable consists of company size and company net income. On the Firm performance, in this study using the measurement of Return on Assets (ROA) and Return on Equity (ROE). This study uses panel data analysis and was conducted by collecting data from 31 manufacturing companies in Indonesia in the period 2016 to 2020. This study found a negative relationship between leverage on firm performance while firm size had a negative relationship with Firm performance with ROE and a positive relationship with ROA. The results of the study of foreign ownership have a positive effect on the performance of companies with ROA and ROE and for the results of net income and institutional ownership have a negative effect on the performance of companies with ROE, while the results of research on net income and institutional ownership have a positive influence on the performance of companies with ROA.

Analisa Faktor yang Mempengaruhi Cash Holding pada Perusahaan Manufaktur yang Terdaftar Pada Bursa Efek Indonesia

The decision to hold cash in the company is a very important financial decision that a company needs to pay attention to. The level of cash holding of a company not only describes the state of the company's business plan and financial strategy, cash holding is related to the company's internal structure and external environment. Companies that have cash can start well and can prevent all risks, while complementing the needs of daily operations and trading activities. This means that companies can use their cash holdings to identify investment opportunities and at the same time, they can allocate capital efficiently to avoid risks caused by operating cash flows. This study aims to see the effect of cash holding on manufacturing companies. The independent variables in this study are firm size, financial leverage, substitute for non-liquid assets, cash flow, capital expenditures, dividend payments. The dependent variable in this study is cash holding. This study uses panel data analysis and is carried out by collecting data from 31 manufacturing companies in Indonesia in the period 2016 to 2021. This study finds a negative relationship between financial leverage, substitution of liquid assets, cash flow, dividend payments to cash flow. while the size of the company, capital expenditures do not have a significant relationship with cash holding.

Maintaining Legitimacy: The Environmental Management Practices and Green Innovation on Indonesian Manufacturing Companies

Maintaining legitimacy through environmental management practices and green innovation is often seen as less supportive of the company's efforts to improve performance and competitive advantage. This paper aims to analyse the legitimacy motivation of companies participating in the performance rating assessment program in environmental management (PROPER). Another goal is to find out the effectiveness of the motive to maintain legitimacy in improving environmental performance and competitive advantage. The document analysis employs to analyse data. The findings indicate that maintaining the legitimacy of stakeholders is the motivation for manufacturing companies to carry out environmental management and green innovation. The data also suggest that maintaining legitimacy from a wider range of stakeholders brings more tangible economic and non-economic benefits, such as higher environmental performance and competitive advantage, compared to focusing solely on maintaining legitimacy from the government. The findings also show that the PROPER deconcentration policy which is being promoted to improve supervision of companies in environmental management by involving the provincial government, companies and universities is effective in increasing the number and compliance of companies in environmental management. However, the government needs to look for breakthroughs so that companies apply environmental practices beyond compliance by considering several points from the criteria or requirements for exceeding compliance in article 6, such as the implementation of environmental management systems, achieving energy efficiency, saving water, reducing and utilizing waste. non-hazardous materials and solid waste, are transferred to the criteria or compliance requirements in article 5.

The Roles of Organizational Politics and Procedural Fairness in the Relationship between Performance Evaluation Systems and Budget Gaming Behavior

This study investigates the relationship between performance evaluation systems and budget gaming behavior. Specifically, it examines the mediating role of organizational politics and procedural fairness. Data collection was conducted by a questionnaire survey of managers of go-public manufacturing companies in Indonesia. Based on a sample of 128 responses, the partial least squares results indicate that general political behavior, the politics of pay and promotion policies, and procedural fairness significantly mediate the non-financial measures and budget gaming relationship. In contrast, the results indicate that the mediating effects of organizational politics and procedural fairness on the relationship between relative performance measures and budget gaming behavior are generally insignificant. This study supports the goal setting theory and the organizational justice theory, and contributes to the management control system literature by recognizing the importance of performance evaluation systems, the importance of understanding political behavior and the perception of fairness to overcome budget gaming behavior. This study provides assurance that organizations can reduce budget gaming behavior through using non-financial measures or incentives.

Does Environmental Information Disclosure Mediate the Effect of Environmental Cost on Environmental Performance?

Environmental performance is a measure created by the Government to determine the company’s concern for the environment. Environmental costs are sacrifices made by companies to obtain good environmental performance. In addition, companies can disclose information about the activities they have carried out to preserve the environment. The purpose of this study was to determine the effect of environmental costs on environmental performance, mediated by environmental information disclosure. Data were obtained from the annual reports of 12 manufacturing companies in Indonesia, registered from 2015-2019. These companies were selected using purposive sampling. The results indicated that: 1) environmental costs had no effect on environmental performance; 2) environmental costs had a positive and significant effect on disclosure of environmental information; 3) disclosure of environmental information had a positive and significant effect on environmental performance; and 4) disclosure of environmental information mediated the effect of environmental costs on environmental performance. Based on these findings, Indonesian manufacturing companies should increase the quality of their disclosure of environmental information.
 Keywords: environmental cost, environmental performance, environmental information disclosure

The Possibility Of Tax Avoidance Perspective Of Company Ownership And The Risk Of Loss

The amount of taxes paid by companies to the state is one of the triggers for avoidance behavior, and psychologically this is a natural response, because taxes are seen as a reduction in wealth/welfare. Therefore, various other negative conditions are very likely to be triggers for tax avoidance behavior, for example experiencing losses and voting for companies. Based on these conditions, this research was conducted to examine the possibility of causation between corporate tax avoidance behavior and the risk of loss and company ownership. To answer this goal, the positivism method was determined as a research fundamental. The research object is a manufacturing company in Indonesia, and the research sample is financial reports for 5 years, totaling 100 data. Data is secondary, taken purposively. To reveal the research phenomenon, the data analysis used multiple linear regression techniques, which consisted of hypothesis testing and terminals. The results of the study suggest that there is a tendency for companies to avoid taxes in difficult financial conditions. In addition, it is also possible that ownership of the company can be a trigger for the company to avoid taxes, because it directly feels reduced profits.

DIRECTOR'S EXPERTISE, EXECUTIVE'S EXPERTISE, AND FIRM LEVERAGE IN MANUFACTURING INDUSTRY: EVIDENCE FROM TWO-TIER BOARD SYSTEM IN INDONESIA

This empirical research analyzes the director's and executive's expertise on the leverage of Indonesian manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2018. Ordinary Least Squares were used to answer the research problems and test the hypotheses. The leverage was measured using Total Short-Term Debt (STD), Total Long-Term Debt (LTD), and Total Debt in Book Value (TDBV). At the same time, the director's and executive's expertise is proxied by postgraduate and professional degrees in finance or accounting. This study finds that a director's professional degree in finance or accounting influences leverage by LTD but does not significantly affect leverage proxied by TDBV and STD. Then, an executive's postgraduate degree significantly impacts leverage proxied by TDBV and STD but does not significantly influence leverage proxied by LTD. Furthermore, the director's postgraduate degree and executive's professional degree in finance and accounting do not affect leverage in all proxies. In control variables, significant influences were found in the effects of firm size on LTD and STD, profitability proxied by ROA on LTD, profitability proxied by ROE on STD, and growth on LTD. Meanwhile, firm age, Non-Debt Tax Shield (NDTS), Earnings Volatility (EVO), and Tangibility (Tang) do not affect leverage in all proxies.

Corporate Governance, Tax Plannings and Firm Risk: Empirical Study of Indonesian Manufacturing Companies

Many companies reduce the tax expenses to as low as possible, leading to tax planning behavior. Tax efficiency is carried out to optimize company profits through various policies. Meanwhile, implementing certain tax policies can increase the company's risk because it triggers uncertainty in cash flows and profits. This study examines the effect of tax avoidance, tax aggressiveness, and tax risk on firm risk. In addition, this study also examines the moderating role of corporate governance, testing the independent and dependent variables. The data used in this study are from manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2016-2019 observation period, sourced from Indonesia Stock Exchange's official website, the company websites, www.finance.yahoo.com and www.bloomberg.com. This study resulted in a sample of 216 firm-years based on purposive sampling. Hypothesis testing is employed by multiple linear regression linear analysis for panel data. The results suggest that tax avoidance and tax risk are positively associated with firm risk, while tax aggressiveness is not associated with firm risk. Furthermore, this study also finds that corporate governance does not have a moderating effect in testing the independent and dependent variables. This study contributes novelty to tax planning activities testing related to firm risk, which is still rarely conducted in previous studies. Banyak perusahaan mengurangi beban pajak serendah mungkin, yang memunculkan perilaku perencanaan pajak. Efisiensi pajak dilakukan untuk mengoptimalkan keuntungan perusahaan melalui berbagai kebijakan. Sementara itu, penerapan kebijakan perpajakan tertentu dapat meningkatkan risiko perusahaan karena memicu ketidakpastian arus kas dan laba. Penelitian ini bertujuan untuk menguji pengaruh penghindaran pajak, agresivitas pajak, dan risiko pajak terhadap risiko perusahaan. Selain itu, penelitian ini juga menguji peran moderasi dari corporate governance pengujian variabel independen dan variabel dependen. Data yang digunakan dalam penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) selama periode pengamatan 2016-2019 yang bersumber dari situs web resmi Bursa Efek Indonesia, situs web perusahaan, www.finance.yahoo.com dan www.bloomberg.com. Berdasarkan purposive sampling, penelitian ini menghasilkan total sampel sebanyak 260 firm-year. Pengujian hipotesis dilakukan dengan menggunakan analisis linier regresi linier berganda untuk data panel. Hasil penelitian menunjukkan bahwa penghindaran pajak dan risiko pajak berhubungan positif dengan risiko perusahaan, sedangkan agresivitas pajak tidak berhubungan dengan risiko perusahaan. Selanjutnya, penelitian ini juga menemukan bahwa tata kelola perusahaan tidak memiliki efek moderasi dalam pengujian variabel independen dan variabel dependen. Penelitian ini memberikan kebaruan terkait dengan aktivitas pengujian perencanaan pajak terkait dengan risiko perusahaan yang masih jarang dilakukan dalam penelitian sebelumnya.

The Influence of Firm Age on Profitability Performance of Indonesian Manufacturing Companies with The Age Level of Directors as Moderating Variable

This research this study empirically investigates the effect of the age level of Board of Directors (BD) as moderating variable toward the influence of firm age on the corporate financial performance of manufacturing companies in Indonesia. Secondary data which were collected from the annual reports of 125 manufacturing companies listed on the Indonesia Stock Exchange (IDX), from year 2014 to 2017, are used as panel data for research sample of this study and regression analysis is applied on the proposed research models. The results of this study outline that the firm age of the listed Indonesian manufacturing companies has significant direct positive influence on the corporate financial performance as measured by accounting-based ratios of profitability, which include ROA, ROE, and NPM. However, the strength of influence of firm age on ROE depends on the effect of the age level of BD members as moderating variable. The higher the age level of BD members is proved to weaken the influence of firm age on ROE, while the lower the age level of BD members is proved to strengthen the influence of firm age on ROE. In addition, the age level of BD members also has significant negative influence on the corporate financial performance as measured by ROA and ROE. Thus, the age level of BD members can be regarded as Quasi Moderator of firm age on ROE. Ultimately, this study contributes to the limited body of corporate governance studies on the demographic factor of age of the corporate leaders, by outlining the indirect influence of the age level of the BD members toward the influence of firm age on the corporate financial performance in the context of economically developing country of Indonesia. Penelitian ini secara empiris menyelidiki pengaruh dari tingkat usia anggota Dewan Direksi (BD) sebagai variable moderasi pada pengaruh dari usia perusahaan terhadap kinerja keuangan perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI). Data sekunder yang dikumpulkan dari 125 laporan keuangan tahunan perusahaan manufaktur dengan periode tahun 2014 hingga 2017 digunakan sebagai data panel yang menjadi sampel penelitian dan analisis regresi diterapkan pada model penelitian dalam studi ini. Hasil analisis pada studi ini menunjukkan bahwa usia perusahaan terbukti memiliki pengaruh positif secara langsung yang signifikan terhadap kinerja keuangan perusahaan yang diukur dengan rasio profitabilitas berbasis akuntansi, yang meliputi ROA, ROE, dan NPM. Namun intensitas pengaruh dari tingkat usia perusahaan terhadap kinerja profitabilitas perusahaan yang diukur dengan ROE secara signifikan bergantung pada pengaruh dari tingkat usia anggota BD sebagai variabel moderasi. Semakin tinggi tingkat usia anggota BD dapat memperlemah pengaruh dari usia perusahaan terhadap ROE, namun Semakin rendah tingkat usia anggota BD dapat memperkuat pengaruh dari usia perusahaan terhadap ROE. Selain itu, tingkat usia anggota BD juga memiliki pengaruh negative secara langsung yang signifikan terhadap ROA dan ROE. Dengan demikian, tingkat usia anggota BD dapat dianggap sebagai Moderator Semu. Penemuan dari penelitian ini turut berkontribusi pada studi tata kelola perusahaan mengenai usia pemimpin perusahaan dengan menguraikan adanya pengaruh secara tidak langsung dari tingkat usia anggota BD pada pengaruh usia perusahaan terhadap kinerja keuangan perusahaan dalam konteks negara dengan kondisi ekonomi yang masih berkembang, Indonesia.