Industrial Subsectors Research Articles

De-industrialization in Azerbaijan's Textile Subsectors: Canonical Correlation Analysis and the Dutch Disease Hypothesis

Since 2014, academic studies have increasingly underscored the potential adverse consequences associated with Azerbaijan's imbalanced and dependent economic structure. It is widely recognized that countries relying heavily on the export of primary commodities are ill-prepared for situations characterized by sharp declines in international commodity prices. Hence, the objective of this paper is to examine the Azerbaijani economy amidst two parallel developments: the growth of oil-related macroeconomic indicators and the contraction of non-oil subsectoral industrial production. To achieve this, the analytical framework of the Dutch disease, a widely preferred theory to study commodity exporters, and canonical correlation analysis (CCA) were employed in the period 1995 to 2021. The findings reveal statistically significant canonical correlations between certain subsectors of the textile industry (such as ginned cotton, cotton fabric, silk fabric, bed linen of cotton, and cotton yarn) and the Dutch disease variables (e.g., oil rent, real effective exchange rate), while other subsectors (including carpets, crocheted legwear and garments, outerwear, underwear, and footwear) do not exhibit similar patterns. These results show that non-consumer subsectors of the textile subsectors, especially the cotton sector, are more vulnerable to the effects of Dutch disease than consumer subsectors of the textile subsectors. In addition, the oil rent variable is a persistent channel that shows a negative correlation with the latent variables of the textile subsectors. These results prompt policymakers and researchers to reassess the role of large extractive industries in a small, open economy like Azerbaijan and to formulate economic policies that safeguard and foster specific subsectors.

Micro Small Industries Performance Improvement: Analysis of the KUR Program

MSMEs contribute 61.07% to Indonesia's GDP, but over 40% face capital problems. Kredit Usaha Rakyat, or People’s Business Credit (KUR), is a government program to solve that by giving subsidies through financial institutions to strengthen MSME’s capital. Since 2015, the processing industry sector has been a priority sector of the KUR program, with KUR's realization target Micro Small Industries (MSI) is 40%, and the target continues to rise to 60% in 2019. This study analyzes the KUR program's impact on MSI performance in Indonesia. This study uses secondary cross-section data from the MSI survey of Badan Pusat Statistik or Central Bureau of Statistics (BPS) from 2014, 2015, and 2019 with Pooled Least Square (PLS) analysis method. The estimation results show that MSI who access the KUR program have a higher average income of 45% compared to MSI who do not access the KUR program. This means the KUR program significantly positively affects increasing MSI income in Indonesia. The results of the sub-sample analysis show that the income of the industrial sub-sectors, such as tobacco, paper, rubber, plastics, machinery, and equipment, are positively significantly affected by the KUR program, and the others, such as printing and recording media industry, base metals, computers, electrical equipment, electronic goods, motor vehicles, other transportation equipment, and repair services, installation of machinery and equipment are not significantly affected. Thus, the government should continue the KUR program, especially for the positively affected processing industry and sub-sector, to improve the performance of micro-small enterprises and industries in Indonesia.

Fair Value Assessment for Industrial Goods Stocks in Indonesia Post-Pandemic

Many industrial sectors were severely affected during the pandemic, which lasted from 2020 to 2021. Such indicators can be observed in various companies implementing efficiency measures ranging from cost reduction unrelated to revenue growth to layoff policies. Despite being under pressure due to the pandemic, many industrial subsectors experienced significant growth in the second quarter of 2021, according to statistics from the Ministry of Industry. This study aims to determine the fair value of shares in Industrial Goods companies listed on the Indonesia Stock Exchange. This approach uses a discounted cash flow (DCF) methodology with free cash flow to the company and relative valuation through price-to-earnings and price-to-book ratios. From 2017 to 2021, historical financial data was utilized to forecast future income and expenditure behavior in three scenarios: optimistic, moderate, and pessimistic. The results showed that the DCF-FCFF technique underestimated IMPC, ARNA, and UNTR. MARK is overvalued in pessimistic, moderate, and optimistic scenarios, while MARK is undervalued in optimistic scenarios. HEXA is overvalued in the pessimistic scenario but undervalued in the moderate and optimistic scenario. ARNA and UNTR were overvalued in all relative assessment scenarios using the PER approach, but MARK and HEXA were undervalued. IMPC is undervalued in a gloomy scenario and overpriced in a moderate and optimistic scenario. In all cases, the PBV method overestimates IMPC, ARNA, MARK, HEXA, and UNTR. The study implies that investors should conduct thorough due diligence before making investment decisions, considering company-specific factors and broader market conditions. Companies in the Industrial Goods sector must be ready to adapt to changing market dynamics and prioritize long-term value creation to attract and maintain investor confidence.

Assessing the efforts of coal phaseout for carbon neutrality in China

As the world's largest producer and consumer of coal, coal phaseout is critical for China to achieve carbon neutrality and contribute to global decarbonization. Here, utilizing the Global Change Assessment Model, this paper simulates China's coal phaseout pathways at the sectoral level between 2015 and 2060, considering the deployment of carbon capture and storage (CCS). The results show that China's coal consumption peaks at 96.4 Exajoules (EJ) in approximately 2020 and needs to decrease to 10.9 EJ by 2060 to achieve carbon neutrality. Specifically, the power sector bears the most significant proportion of responsibility, as its coal consumption must fall to 1.4 EJ by 2060, which is approximately 97.2% lower than the peak in 2020. The industrial sector is next and needs to decrease consumption to 9.2 EJ of coal in 2060, which is a reduction of 32.3 EJ below the 2020 level. Electricity will replace coal as the dominant energy source in the industrial sector after 2040. However, a portion of feed coal will remain in the industry for a long time. Among the industrial subsectors, the steel sector needs to put significant pressure on efforts to phase out coal, followed by the cement and nitrogen fertilizer sectors. In 2060, these three sectors will consume 5.7 EJ of coal, accounting for 64.1% of the total coal consumption in the industrial sector. The deployment of coal-CCS is one of the alternatives to achieve carbon neutrality and ensure smooth coal phaseout. Under the carbon neutrality scenario, the annual deployment of coal-CCS needs to exceed 0.13 EJ from 2025 to 2045, with a peak at 3.3 EJ in 2045.

Routing Evaluation Method for Self-drive Tourism Network Development Using Cross-efficiency of Data Envelopment Analysis Model

In travel and tourism, traveling by road is a popular means of transportation. In recent years, tourism development strategies and the creation of themed routes as tourist attractions have gained traction (Božić & Tomić, 2016). Transportation is not only an essential part of tourism infrastructure, but it is also an essential prerequisite for promoting tourism development. Self-drive tourism refers to people traveling from origins to destinations in their own or rented cars while engaging in tourism-related activities anywhere along the way (Prideaux et al., 2001). It is one of the major subsectors of the tourism industry that has benefited from the advancement of the road transportation system (Buckley & Ollenburg, 2012). For a long time, the COVID-19 pandemic has had a devastating impact on the global travel and tourism industry (Kim et al., 2021). Several countries, particularly those with a high tourism intensity, are now restoring their tourism industries through different recovery strategies. However, with the continuation of the COVID-19, private vehicles may now be positioned as temporarily safer modes of transportation (Butler et al., 2021). Building on this proposition, self-drive tourism may provide exceptional platforms for achieving well-being improvements, especially in light of the constraints and anxieties caused by COVID-19, which remains endemic. Keywords: self-drive tourism, tourism network, network development, route evaluation, data envelopment analysis

Earnings Management Factors In The Consumer Goods Industry During The Covid-19 Pandemic

The global proliferation of the Covid-19 pandemic has adversely impacted public health, society, and the economy. To face the pandemic, managers are frequently required to make highly complicated decisions about financial reports. Earnings management occurs when managers modify financial statements for the advantage of stakeholders by evaluating opportunities in certain business activities. This paper investigates the impact of audit opinion and tax incentives on earnings management and leverage as a moderating variable among consumer goods manufacturing companies. A purposive sampling technique was performed to select 15 manufacturers in the consumer goods industry subsector listed on the Indonesia Stock Exchange between 2019 and 2021, which matched the research criteria. This study's findings indicate that audit opinion and tax incentives influence earnings management among consumer goods companies in the COVID-19 pandemic era. Moreover, leverage was a moderating variable for audit opinion and earnings management, but it did not moderate the effect of tax incentives on earnings management.

Characterizing sector-wide thermal energy profiles for industrial sectors

Process heat electrification, energy efficiency improvement, and renewable technology integration are the most effective ways of achieving industrial decarbonization. However, precise knowledge of thermal energy demands and excess heat sources along with the corresponding temperature levels is imperative for the most optimum integration of aforementioned process. The current study presents a novel methodology for constructing sector-wide composite curves to accurately characterize the thermal energy demands and the available excess heat sources for the Swiss industry subsectors. The sector-wide energy demand profiles derived from this methodology offer valuable insights into the quantity of heat demand and the quality of the available excess heat. Thus, enabling the implementation of energy efficiency and decarbonization technologies such as heat pumps, and renewable heating and cooling technologies. The sector-wide energy demand profiles are built using Pinch Analyses and top-down statistical approach, thus ensuring complete sectoral coverage. The application of this novel approach is demonstrated using Swiss meat and chocolate industry subsectors as case studies. Based on the sector-wide energy demand profiles developed for meat and chocolate production, heat pump integration and solar thermal integration can potentially reduce about 80% of process heat demand, for both sectors.

Pengaruh Corporate Social Responsibility terhadap Kinerja Keuangan Perusahaan dengan Tata Kelola Perusahaan sebagai Variabel Moderasi pada Perusahaan Manufaktur di Indonesia

This study discusses the effect of corporate social responsibility on company financial performance with corporate governance as a moderating variable in manufacturing companies in the consumer good industry sub-sector which are listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period. The research samples were 29 companies with a total of 145 data. The data analysis technique in this study was using moderated regression analysis (MRA). The results of the study show that corporate social responsibility (CSR) variables have no significant effect on financial performance. Corporate social responsibility (CSR) variable has no significant effect on financial performance which is moderated by corporate governance variables based on foreign ownership, institutional ownership, and managerial ownership. The corporate social responsibility (CSR) variable has a simultaneous or overall effect on financial performance with corporate governance as a moderating variable.

THE EFFECT OF DEBT LEVELS, CASH FLOW VOLATILITY, AND AMOUNT OF ACCRUALS ON PROFIT PERSISTENCE IN COMPANIES MANUFACTURING SUB-SECTORS OF VARIOUS INDUSTRIES LISTED ON INDONESIA STOCK EXCHANGE YEAR 2017-2021

This research was conducted to see how much influence the Level of Debt, Cash Flow Volatility, and Amount of Accruals have on Profit Persistence in Manufacturing Companies in the Various Industries Sub Sector in 2017-2021. The population in this study is the 2017-2021 Financial Statements for 9 Manufacturing Companies in Various Industrial Sub-Sectors, so the total sample is 45. This type of research uses a descriptive quantitative method with secondary data so that it can describe each variable in this study. The data will be processed using Statistical Product and Service Solution (SPSS) Version 25. The data analysis technique in this study uses descriptive analysis test, classic assumption test, coefficient of determination test, multiple linear regression analysis test, and uses a partial hypothesis test (t test ) and simultaneous test (F test) with a significance level of 0.05 . Based on the results of data analysis tests that have partially Debt Level has a negative and significant effect on Profit Persistence and Cash Flow Volatility has a negative but not significant effect, while the Accrual Amount has a positive and significant effect on Earnings Persistence., and the results of the study simultaneously stated that all independent variables significant effect on Profit Persistence simultaneously with the test results of the coefficient of determination showing an effect of 33.5%.

Pengaruh Fraud Diamond Terhadap Kecenderungan Kecurangan Laporan Keuangan Yang Terdaftar di BEI Tahun 2019-2021

This research aims to determine the effect of fraud diamonds on the tendency for fraudulent financial reports in Manufacturing Companies in the Consumer Goods Industry Sub-Sector listed on the IDX in 2019-2021. This research was conducted using the associative causal method. The sample selection in this study used a purposive sampling method, with the sample criteria being the financial reports of 10 companies in the Consumer Goods Industry Sub-Sector Manufacturing Company registered on the IDX in 2019-2021. This research data was obtained from literature and documentation studies, data analysis techniques were obtained from IBM SPSS statistics version 26. Data analysis used in this research is, descriptive statistics, classical assumption tests using normality tests, autocorrelation tests, multicollinearity tests and heteroscedasticity tests, analysis multiple linear regression, hypothesis testing using partial test (t), simultaneous test (f) and coefficient of determination test (R2). The results of the research partially show that external pressure and ineffective supervision have proven to have a positive effect on financial report fraud. Meanwhile, the financial target variables, change of auditor, change of director were proven to have no positive effect on financial statement fraud. The variables pressure, opportunity, rationalization and ability simultaneously have a significant effect on financial statement fraud at a significant level of 5%. In this research, the fraud variable is explained by independent variables by 31.3%, the remaining 68.7% is explained by other external factors which are not in this study.

The effect of “energy of scale” on the energy consumption in different industrial sectors

This study investigates the concept of “energy of scale“ in industrial energy systems, focusing on the reduction of specific energy consumption as production capacity increases. Using data from more than 25 000 industrial plants in Europe and the United States (U.S.), we develop fit functions for different industrial subsectors to validate the “energy of scale” effect. Our findings confirm that “energy of scale” exists in industrial energy systems and varies across subsectors. The effect is consistent between Europe and the U.S. We identify that energy-consuming units involved in value creation within production chains have the most significant influence on the scaling effect. This discovery has important implications for policy makers, facility managers, and energy researchers, providing new avenues for promoting energy efficiency and supporting the transition to cleaner energy sources.

The Influence Of Leverage, Dividend Per Share, And Cash Flow Volatility On Hedging Decisions (Empirical Study of Manufacturing Companies in the Food and Beverage Industry Sub-Sector Listed on the IDX for the 2019-2021 Period)

This study aims to examine the effect of leverage, dividend per share and cash flow volatility on hedging decisions in food and beverage companies listed on the IDX during 2019-2021 which were selected based on certain criteria using purposive sampling. This research uses secondary data in the form of annual reports of food and beverage companies listed on the IDX during 2019-2021. The sample in the company is 25 x 3 years of research and the total sample is 75. The type of research used is quantitative research, the data used in this research is secondary data in the form of financial reports listed on the IDX. The analytical method used is logistic regression analysis which is processed using the SPSS program. The results showed that: leverage has no significant effect on hedging decisions. Dividend per share has no significant effect on hedging decisions. Cash flow volatility affects hedging decisions. The results of the study simultaneously leverage, dividend per share, and cash flow volatility variables influence hedging decisions. Keywords : Leverage, Dividend Per Share, Cash Flow Volatility, and Hedging Decisions.

THE CONTRIBUTION OF THE PROCESSING INDUSTRY TO IMPROVING INDONESIA'S ECONOMY BEFORE AND AFTER THE PANDEMIC


 The impact of the covid-19 pandemic has made the economy in Indonesia weakened. we can look at the high levels of unemployment and poverty at that time. The processing industry is one of the sectors that has an important role in driving the economy in Indonesia. This study analyzes the contribution of the processing industry sector in the post-pandemic economic recovery using the Input-Output table analysis method. The Data that the researchers used came from the Central Statistics Agency (BPS). Based on the results of the study, most of the processing industry subsectors have the ability to encourage production growth and improve economic recovery during a pandemic through seven subsectors that have consistently contributed to increasing labor absorption, improving weakening household consumption and weakening people's purchasing power due to the covid 19 pandemic in Indonesia. According to data from the Central Bureau of Statistics (BPS), the food and beverage industry subsector is the largest contributor by generating gross domestic product (GDP) of 1,057,001 27 billion in 2020. Followed by the other six sub-sectors of the processing industry which also contributed a lot to economic recovery. The processing industry is one of the industries that plays an important role in helping the economic recovery of the community in Indonesia after the pandemic.

Analysis of the Influence of Environmental, Social, and Governance (ESG) on Company Value in Companies Listed in the Jakarta Islamic Index (JII) Period 2019-2021

Purpose: The writer has the aim of researching the impact of environmental, social, and governance on the company values of company listed in Jakarta Islamic Index.
 Design/Methodology/Approach: This studies approach makes use of quantitative studies techniques. The information used in this research is secondary statistics. The population and samples used in this study were 60 populations by taking 20 samples of manufacturing companies in the food and beverage industry sub-sector.
 Findings: The test results show that the environmental and social variables do not affect company value, then governance variables have an effect on company value.
 Implications/Originality/Value: So it’s concluded that the environmental and social variables do not affect company value, then governance variables have an effect on company value.

Proposed Omnichannel Strategy to Increase Sales Revenue in a Fashion Retail Company (Case: La Omvi)

In recent years, the creative industry sub-sector of the fashion sector in Indonesia has become a profitable industry. The development of the fashion industry in Indonesia has contributed significantly, and the creative industry sub-sector group has become a leading sub-sector group. La Omvi, a fashion retail store brand established in December 2020, has experienced stagnation in sales. Due to its small population and predominately immigrant demographic, the Cikarang market has a limited range of products. This research aims to propose an effective omnichannel approach tailored to the specific needs and market conditions of La Omvi, with a focus on increasing sales revenue and enhancing the customer experience. The research employs qualitative methods, including in-depth interviews and observational analysis, to gather insights into customer experiences and expectations. Based on these findings, recommendations are provided to enhance the omnichannel strategy and drive sales growth for La Omvi. This research contributes to the understanding of effective omnichannel strategies in the fashion retail industry and provides practical insights for fashion retailers aiming to optimize their sales revenue through an omnichannel approach.

Digital media and creative economy potential on youth employment in Kenya: a grounded theory perspective

PurposeKenya leads East Africa in creative goods export and enjoys high internet penetration. Therefore, identifying pathways, missed opportunities for accelerating job creation and development in the sector and strategies for mitigating youth-related challenges are essential. This paper therefore aims to examine the effects of digital media and the cultural and creative industry (CCI) on youth employment and economic development.Design/methodology/approachThe document review and analysis data came from 45 scientific and 23 grey literature articles. While the lack of primary data is a study limitation, secondary data were drawn from the United Nations Conference on Trade and Development Statistics and the 2016–2022 entertainment and media outlook analysis. Microsoft Excel 2021 for Windows was used to analyze quantitative data and generate results.FindingsSince the CCI sector is characterized by limited financial opportunities, low youth participation in the labor force and weak policy frameworks, success in the industry requires key pathways. These include investment in digital-led innovations, developing innovative models, building partnerships with the private sector, strategic investment by government in the potential creative industry sub-sectors and identifying successful scaling-up models.Originality/valueInformation gathered through this study is crucial to counter the youth unemployment challenge and strategy identification, which could be used in skills and capabilities development in the potential creative economy. Future researchers must explore how to apply the proposed creative capacity theoretical lens to inform research in the sector.

Determinant Analysis of Going Concern Audit Opinion

This study aims to examine and analyze the determinants of going concern audit opinion (an empirical study of consumer good industry sub-sector manufacturing companies on the IDX in 2017-2021). The population in this study is that there are 37 Consumer Good Industry Companies listed on the Indonesia Stock Exchange issued financial reports for 2017-2021. This research approach is positivist by testing the research variables. Also, purposive sampling was chosen to determine the unit of analysis. Data analysis used logistic regression with the help of the SPSS software program. SPSS output shows the result that going concern audit opinion is influenced by debt ratio, company size, audit lag. Meanwhile, audit quality and financial distress do not affect the going concern audit opinion given by the auditor.

The Effect of Sales Growth and Profitability on Company Value with Debt Policy as Moderating Variables

Financial ratio have several function for strategic decision making. Several ratio such as profitability or sales growth are the most important for capital market signal. This Research aims to examine the effect of sales growth and profitability with debt policy as the moderating variable on the value of the manufacturing industry sub-sector of the consumer goods industry listed on the Indonesia stock exchange in 2018-2020. With a total sample of 165 companies. The research methodology is quantitative with multiple linear regression testing with SPSS V23 data processing tools. Based on the result of model 1 testing, the result showed that sales growth had no effect on firm value, and profitability has a positive effect on firm value. The result of model 2 testing, the resulting research shows that sales growth has a positive effect on firm value, Profitability has a positive effect on firm value, debt policy does not moderate the effect of sales growth on firm value and debt policy does not moderate the effect of profitability on firm value.

Regarding the generation of time resolved industrial waste heat profiles

The timely transient energy supply or insufficient temperature levels of industrial waste heat (IWH) hinders the full exploitation of its energy and CO2 emission reduction potentials. This outlines the necessity for investigating IWH in a time resolved manner, which, however, is still widely disregarded, especially in generalized industrial energy system analyses and research. Within this study, we present our developed first-of-its-kind approach, which addresses this topic from a holistic system perspective and enables the generation of time resolved IWH profiles for all industrial subsectors. The backbone of our approach is the distinction of energy-intensive subsectors (e.g. Non-Metallic Minerals) and non-energy-intensive subsectors (e.g. Food & Beverage Production), as both vary in regard to their underlying process designs, production routines and data accessibility. Concerning the first group we found that time resolved IWH profiles can be generated by combining process specific data in a bottom-up manner with temperature gradients of the whole production route throughout the paradigm of discrete event simulation. We investigated further that IWH profiles of non-energy-intensive subsectors are depicted by examining existing subsector resolved waste heat fractions and combining this information with plant-specific load profiles in a top-down manner. We practically prove our findings for both groups within (1) a case study of generating IWH profiles of a real-life cement production mill as part of energy-intensive subsectors and (2) outline the analysis of waste heat fractions for the non-energy-intensive subsector of food production exemplarily. Both cases reflect the above findings successfully and with satisfactory results, which can therefore be regarded as basis for future research work concerning time resolved IWH.

PROPERTIES OF BIOCOMPOSITES FROM WASTE EGGSHELL AS FILLERS

<p>In recent years there has been a heightened concentration on the industrial subsectors that are the primary contributors to environmental pollution. Filler materials made from mineral limestone, which is composed of calcium carbonate (CaCO3), are utilized in the production of polymer composites in order to lower production costs and improve the qualities of some of the composites. On the other hand, eggshells are typically regarded as waste despite the fact that they contain significant amounts of CaCO3 in addition to certain organic membranes. The purpose of this research is to investigate the use of thermal and chemical treatments to produce purified eggshell powder with the interest of utilizing waste eggshell as an alternative to limestone. Polymer composites were developed using bio-epoxy resin with various quantities of eggshell, refined eggshell, and limestone fillers (5%, 10%, and 20% weight). Eggshell could be utilized as filler in bio-epoxy composites, which could then be employed in applications that require a lower cost but a greater tensile and flexural modulus.</p>