Leverage Factors Research Articles

Corporate Leverage Decisions in Malaysian Property Sector: Before and During Pandemic

Financial constraints and leverage decisions have challenged the survival and expansion of property businesses, especially during unfavorable economic conditions. This study aims to investigate the factors of corporate leverage in the Malaysian property sector from 2015 to 2021, covering the coronavirus disease (COVID-19) pandemic. The sample size of this study consists of 55 top-listed property companies in Bursa Malaysia. Six pre-determined factors from the current literature include profitability, firm size, tangibility of assets, liquidity, growth opportunities and non-debt tax shields. On top of the full-period test, this paper examines the possible changes in the relationship before and during the COVID-19 pandemic. Overall, our panel data analysis shows that firm size and growth opportunities significantly positively affect leverage, while liquidity negatively correlates with leverage. In our sample, profitability and non-debt tax shields do not exhibit significant roles in the relationship with corporate leverage. Our conclusion is robust across the periods of study and regression models. It contributes updated empirical evidence to the already scarce studies of financing decisions in the sector, which plays a crucial role in driving the nation’s economic growth.

Analysis sustainability status of laeya river management for raw water supply in South Konawe Regency Southeast Sulawesi Province

South Konawe Regency experienced a decrease in water supply and an increase in water demand, due the changes in land use caused by ongoing land exploitation, which increases runoff and decreases infiltration capacity. As a result, more water is lost to the ocean, threatening the water supply from Laeya River. Laeya River raw water is not only utilized for PDAM raw water sources, but also used to meet the domestic needs of the community, agricultural irrigation and plantations, so it is important to know the its sustainability status. This research aims to carrying out activities that control the water quality of the Laeya River, as well as to serve an information regarding the status model for the sustainability of raw water management, and to raise environmental awareness. This study was carried out in the Laeya River, South Konawe Regency. Sampling was conducted at three stations representing the upstream area of the Laeya River, the middle area and the downstream area. The Multi Dimensional Scaling (MDS) analysis method was used to conduct an analysis of the status of sustainable natural resource management for sustainable raw water supply. Based on the results can be concluded that Analysis of the 41 attributes derived from five dimensions resulted in 12 attributes acting as leverage factors in each dimension partially. To improve the sustainability status of raw water management in the research area, it is necessary to intervene the 12 attributes, namely 11 attributes that need to increase the intensity of their activities, and one attribute needs to be controlled and planned for its development properly. The results of the assessment of 41 attributes from five dimensionsin the management of the Laeya River for raw water supply in South Konawe Regency, currently is at less Sustainability status(Sustainability Index value of 36.63).KeywordsSustainability Raw WaterMDSMonte CarloRAPS-LaeyaSouth Konawe Regency

The Recreational Potential of Green Open Spaces as a Leveraging Factor for Green Economic Development

Kambang Iwak (KI) RTH in Palembang is an oasis for the life of Palembang City. KI Park is always busy with residents visiting for recreation, on weekends KI Park is a place to unwind for local workers, and residents to exercise. The green route of the Muaro River in Padang City nowadays tends to be busy with city residents, especially in the afternoon before Maghrib, and several spots even have non-permanent stalls set up to facilitate residents' activities. These two green open spaces are mini objects in this research to see their recreational potential. This research aims to look at the recreational potential of residents in the Kambang Iwak RTH (Palembang, South Sumatra) and the Muaro River Green Route (Padang, West Sumatra). This research was carried out in two cities in two provinces, namely: 1) Kambang Iwak RTH, Palembang City, South Sumatra Province, and 2) Muaro River Green Belt, Padang City, West Sumatra Province. The data collected in this research was divided into 2 (two) groups, namely primary data and secondary data. The recreational potential in both green open spaces looks at the internal aspects of visitors which are obtained through questionnaires to visitors who are currently using the green open spaces. The research results showed that the highest user choice was the recreational potential of the Kambang Iwak Palembang green open space as a recreational destination for residents were enjoying culinary delights (93.47%), walking (91.84%), enjoying nature (89.39%), enjoying the air (88, 16%), chatting (85.71%), playing (75.92%), studying (66.94%), and cycling (59.59%), while the Sungai Muaro Padang RTH as a recreation destination for residents is to enjoy nature (84.52%), chatting (84.52%), enjoying the air (82.58), enjoying culinary delights (74.84%), traveling (74.19%), studying (74.19%), playing (67.74%), cycling (62.58%), and fishing (62.58%).

Assessing deep convolutional neural network models and their comparative performance for automated medicinal plant identification from leaf images

Medicinal plants have got notable attention in recent years in the field of pharmaceutical and drug research. The high demand of herbal medicine in the rural areas of developing countries and drug industries necessitates correct identification of the medicinal plant species which is challenging in absence of expert taxonomic knowledge. Against this backdrop, we attempted to assess the performance of seven advanced deep learning algorithms in the automated identification of the plants from their leaf images and to suggest the best model from a comparative study of the models. We meticulously trained VGG16, VGG19, DenseNet201, ResNet50V2, Xception, InceptionResNetV2, and InceptionV3 deep neural network models. This training utilized a dataset comprising 5878 images encompassing 30 medicinal species distributed among 20 families. Our approach involved two avenues: the utilization of public data (PI) and a blend of public and field data (PFI), the latter featuring intricate backgrounds. Our study elucidates the robustness of these models in accurately identifying and classifying both interfamily and interspecies variations. Despite variations in accuracy across diverse families and species, the models demonstrated adeptness in these classifications. Comparing the models, we unearthed a crucial insight: the Normalized leverage factor (γω) for DenseNet201 stands at 0.19, elevating it to the pinnacle position for PI with a remarkable 99.64 % accuracy and 98.31 % precision. In the PFI scenario, the same model achieves a γω of 0.15 with a commendable 97 % accuracy. These findings serve as a guiding beacon for shaping future application tools designed to automate medicinal plant identification at the user level.

Analysis of Factors Leveraging Sustainability of Community-Based Drinking Water Supply (Case Study of Drinking Water Supply for The Pamsimas Program, Kapongan Sub-District, Situbondo Regency)

This research aims to identify the sustainability driving factors of drinking water provision in the PAMSIMAS program in Kapongan Sub-District, Situbondo Regency, focusing on community participation based on environmental, social, economic, technological, and institutional dimensions. This study utilizes a quantitative approach with the Rap-SPAM analysis method, a modification of Rapfish. The data used consist of both primary and secondary sources. Primary data are obtained through surveys, observations, and interviews with respondents, utilizing questionnaires. Secondary data is gathered through relevant literature reviews and various related institutions. The results of the Rap-SPAM simulation on 5 dimensions of sustainability, obtained 18 sensitive attributes or main leveraging factors. The main leverage attributes in the environmental dimension are the surrounding land condition, pollution potential, rainfall & rainy days, and quantity of raw water. In the social dimension, the main leverage attributes are community meetings, practices of using the water supply system, and community trust. In the economic dimension, the main leverage attributes are existence of fees for the development of the water supply system network, availability of funds for the development of the water supply system, existence of user fees, and affordability of user fees. In the technological dimension, the main leverage attributes are water efficiency of water use, ease of technology application, network leakages, and quality of received water. In the institutional dimension, the main leverage attributes are clear organizational structure, performance and financial reporting by the management to the users of the water supply system, and regulations for water supply management.

Assessing the sustainability of garlic production for determining strategies in Garlic Sustainable Development Program

Indonesia is the largest garlic importer in the world, relies on imports for over 95% of its garlic needs. To address this import dependence and meet domestic demands, the Government initiated the National Garlic Development Program. However, the program has yet to achieve the targeted production, even the development of garlic faces many obstacles that threaten its sustainability. The objectives of this study are as follows: (1) to determine the sustainability status of garlic production based on the dimensions of sustainability, and (2) to identify the leverage factors for the sustainability of garlic farming. The research location was purposively selected in Temanggung District, Central Java, which is Indonesia’s largest garlic production center. The sustainability status of garlic production was analyzed using multidimensional scaling (MDS). The results indicate that garlic production exhibits a less sustainable status across multiple dimensions. The identification of leverage variables, suggested interventions involve the following measures; enhancing irrigation systems and minimizing reliance on chemical fertilizers, providing price and marketing guarantees, reducing farmers’ dependency on subsidies, expanding the cultivated land through the application of advanced technologies for mass production of superior seeds, strengthening the involvement of agricultural extension officers, fostering consumer preferences and farmers’ engagement in garlic cultivation.

Plantation Industry Firm Value: The Factors of Profitability, Leverage, and Company Size

Plantation Industry Firm Value: The Factors of Profitability, Leverage, and Company Size

Analisis Kinerja Keuangan PT. Sepatu Bata Indonesia Tbk dengan Menggunakan Metode Du Pont System Sebelum dan Selama Pandemi Covid-19

This study was conducted with the aim of being able to test whether there is a comparison of financial performance before the pandemic (2018-2019) and during the covid-19 pandemic (2020-2021) through the use of the Du Pont System approach at PT Sepatu Bata Indonesia Tbk. The indicators used include Net Profit Margin (NPM), Return on Asset (ROA), and leverage factors. These three indicators will determine the company's Return on Equity (ROE). From the test results, it is known that the financial performance of PT Sepatu Bata Indonesia Tbk from 2018 to 2021 analyzed using the Du Pont System is in a bad condition. The Covid-19 pandemic has had an impact on the company's financial performance, as seen from the declining Return on Equity (ROE) value. The results obtained from the research have shown that the value of Net Profit Margin (NPM), Return on Asset (ROA), Equity Multiplier, Return on Investment (ROI) and Return on Equity are quite influential before and during the pandemic.

Built environment from the ancient Bali: The Balinese heritage for sustainable water management

Custom and tradition played essential roles in developing the built environment among the Balinese Hindu society for centuries. The wisdom in managing the environment has passed through generations, as demonstrated by some ancient remnants and Old Balinese inscriptions. We observed that glorifying the mountains in this society has long been a part of protecting the hydrologic cycle. This practice even started in the pre-Hindu era, as shown by sacred megalithic features adjacent to the natural reservoir, water spring, and mountainous forest. At some point, the behavior has successfully passed through times and even developed into a more complex socio-cultural system such as subak. Nevertheless, Balinese society is now facing the threat of hydrological disasters, primarily due to a rapid change in land use. Here, we describe the importance of revealing the value behind the ancient Balinese water-management system to gain people's resilience and sustainability. Multidimensional scaling (MDS) was used to measure the sustainability index and the leverage factors affecting water tradition in Bali. We reveal that the inheritance of the Balinese people's water management tradition is generally weak in each dimension. The socio-cultural dimension score is relatively high, with a sustainability score of 71.11%, which signifies that the society still trusts their culture of water resources management to protect nature. However, the economy and ecology dimensions' score low, with sustainability scores of 56.12 and 63.34%, respectively, indicating the need for improvement in economic matters through the policy strategy. Moreover, our study also suggests that the noble value of the cultural heritage related to the water management system needs to be revitalized and disseminated to the public. Hence, the implication is not limited to conserving the natural environment and cultural heritage. It also provides a reference for the current society regarding a built environment in harmony with sustainability principles.

DETERMINANTS OF FINANCIAL EFFICIENCY IN CONTAINER SHIPPING INDUSTRY

The purpose of this study is to identify the industry-specific factors affecting the return on sales ratios of 11 leading container shipping companies that are partners in the growing global trade. The study analyzes the financial data of non-publicly traded container shipping companies for the years 2010–2021 using panel data methodology. The data used in the analysis were obtained from the annual financial reports published by each company on its corporate website. The results show that, in contrast to the leverage and operating size factors, the fixed asset ratio, EBIT, and receivables turnover ratios have a positive effect on the return on sales ratios of container shipping companies.

Market momentum amplifies market volatility risk: Evidence from China’s equity market

We examine the role of a belief-based momentum indicator, measured by conditional past returns (CPR), in the realized volatility (RV) predictability of equity markets. Based on the week- and month-horizon CPR, we construct the HAR-CPR and HAR-LCPR models on the basis HAR-RV model. Here, the HAR-LCPR model additionally includes the daily leverage factor in the absence of daily CPR. In China, we find that: 1) week- and month-horizon CPR have significantly positive impacts on one-, five-, and 22-days-ahead RVs; 2) our out-of-sample results further indicate that the HAR-LCPR model performs best in forecasting one- and five-days-ahead RVs, whereas the HAR-CPR model is a more reliable forecasting model for 22-days-ahead volatility; 3) the performance also passes various robustness tests, including sub-period performance testing, alternative training rolling window, and alternative RV estimation. We show the economic mechanism underlying the predictive role of CPR from the perspective of investors’ trading activities.

PENGARUH LEVERAGE, UKURAN PERUSAHAAN DAN FAKTOR LAINNYA TERHADAP PENGHINDARAN PAJAK

The purpose of this research was to determine the effect of leverage, company size and other factors on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange by obtaining empirical evidence. The factors used as independent variables in this research are leverage, company size, capital intensity, profitability, audit committee, and sales growth which can influence the occurrence of tax avoidance as the dependent variable by using the Effective Tax Rate (ETR) measurement. The population used in this research are all manufacturing companies listed on the Indonesia Stock Exchange during the 2019-2021 period. The sample selection was carried out using a purposive sampling method with predetermined criteria and resulted in 58 companies with 174 data that met the criteria and could be used as research samples. Data analysis in this research used multiple regression methods with several tests. From the tests and analysis carried out, this research shows that leverage has a positive effect on tax avoidance because greater leverage will increase interest expense as a deductible expense thereby reducing the level of tax expense and profitability has a negative effect on tax avoidance because the amount of profitability illustrates the amount of company profits that increase tax expense while other factors, namely company size, capital intensity, audit committee, and sales growth have no effect on tax avoidance. Keywords : Tax avoidance, leverage, capital intensity, profitability

Determinant Factors of Leverage – Based Firm Value, with Management Ownership Role as a Moderation

This study aims to analyze leverage on firm value and the moderating role of management ownership variables in the influence of leverage on the value of manufacturing companies listed on the Indonesia Stock Exchange for the period 2015-2020. The population of this research is all manufacturing companies on the Indonesia Stock Exchange for the 2015-2020 period. . The sampling technique in this study uses purposive sampling with the criteria of manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2020 period, with the total number of shares owned by the company's management above 1% of all outstanding shares so that the sample is 162. To see the type of moderation then used two equation models, so that the regression model equation. The data was processed with SPSS'26 software. The result of the research is that leverage has a positive and significant effect on firm value. Management ownership is proven to moderate the effect of leverage on firm value. The existence of management ownership in its interaction with leverage and firm value is a pure moderator

Study on green concrete (porous concrete) sustainability in order to support the sustainable construction in Indonesia

Currently implementation progress of green concrete (porous concrete0 is still very slow. The sustainable construction launched by the government has also not received a positive response from the construction sector. Greenery Open Spaces (RTH) and urban spatial planning in Indonesia have not accommodated the type of water-friendly pavement (porous concrete). Buildings that must meet the 30% of Green Base Cooeficient (KDH) also have not included the criteria for water-friendly concrete pavements. From the results of the Multi-Dimensional Scaling (MDS) analysis using Rapfish-R, it is known that the sustainability status of porous concrete is at a score of 71.9 (sufficiently sustainable). There is no leveraging factors from the ecological dimension. Leverage from economic dimensions, i.e.: added value for customer, durability and installation costs. Institutional dimensions, i.e.: application of ecolabels, product standards and criteria for RTH and KDH. Socio-technical dimension, i.e.: public understanding and perception, certification scheme, role of media, design and maintenance. From this leveraging factors, then can be formulized the strategy and roadmap for supporting the sustainable construction related to green concrete application

Pengaruh Leverage, Efisiensi, Dan Ekonomi Makro Terhadap Kebijakan Deviden Perusahaan Listing Sri-Kehati Indeks

This study aims to analyze the factors that influence dividend policy, namely leverage, efficiency and macroeconomics in 20 companies that carry the green concept (SRI) listed on the Indonesia Stock Exchange for the 2017-2021 period. The sampling technique in this study was purposive sampling method and 100 samples were obtained. The analytical method used is multiple linear regression analysis. The results of this study indicate that efficiency has an effect on dividend policy, while leverage and macroeconomic factors have no effect on dividend policy.
 
 Keywords: Leverage, Efficiency, Macroeconomics and Dividend Policy

Fundamental Analysis of Stock Prices in Mining Sector Listed on The IDX (Indonesia Stock Exchange)

In this study, the IDX (Indonesia Stock Exchange) stock prices of mining businesses were examined in relation to profitability, leverage, and market ratios. The 45 mining businesses listed on the IDX for the years 2019 through 2021 made up the study's population. 25 of these firms were picked as the sample using the purposive sampling method. The research was quantitative and made use of secondary information from each company's yearly financial reports and closing stock price. The analysis was carried out using SPSS 27. The study's findings demonstrated that the factors of profitability, leverage, and market ratios had a substantial impact on the stock prices of mining firms listed on the IDX when taken into consideration together.

Sustainability in adoption of new improved rice variety innovations in West Kalimantan Province: Review of economic aspects

New Improved varieties (NIV/VUB) are the cheapest technological innovation that can make rice production enhanced. Therefore, the utilization of VUB must be maintained. The purpose of this study was to determine the sustainability status and performance index of the adopting VUB innovation and its leveraging factors in terms of the economic aspect. Information related to the factors is highly needed for the sustainable use of the VUB. The data of this study were gradually obtained. The first stage was collecting information on the economic aspects and the driving factors of the sustainability in the adoption of new superior varietal innovations by conducting focus group discussions (FGDs). The second stage was interviewing experts about conditions and predictions of the driving factors. Multi-Aspect Sustainable Analysis (MSA) was applied to analyse the sustainability status and the factors. The results revealed sustainable adoption of the VUB concerning economic aspects. Moreover, performance of the economic aspects will increase in the future in terms of encouraging the sustainability of the adoption with assuming that conditions are unchanged despite the absence of the government intervention. The biggest driving factor of the economic aspect is credit granting.

Monitoring groundwater potential dynamics of north-eastern Bengal Basin in Bangladesh using AHP-Machine learning approaches

Groundwater is a vital natural resource that plays a critical role in sustaining agriculture, forest ecosystems, industry, and household uses. However, due to natural and anthropogenic factors, groundwater is facing alarming declines. Therefore, this study aimed to assess the potential groundwater zones (PGWZ) in the north-eastern Bengal Basin of Bangladesh between 1990 and 2021 using satellite images, public and field data pertaining to ten environmental parameters. The study utilized analytical hierarchy process to identify PGWZ and evaluated the effectiveness of machine learning (ML) algorithms (K-nearest neighbors, support vector machine, XGBoost, decision tree, and random forest) for PGWZ classification. The findings indicated a decline in groundwater potential over the decades, which was categorized into five distinct zones based on the relative groundwater potential. The very high PGWZ decreased from 2.19% to 1.3%, and high PGWZ from 34.57% to 28.24%, while there was a sharp increase in the poor status of PGWZ (very low, low, and medium zones) over the same periods. The accuracy and kappa coefficients of the ground data validation for the estimated PGWZ map were 84.34% and 79.61%, respectively. According to accuracy, precision, recall, and f1-score, five ML models are reliable predictors of PGWZ. RF achieved the highest accuracy of 92.33%, while XGBoost achieved an accuracy of 90.31%. Both models demonstrated superior prediction performance for PGWZ based on the normalized leverage factor. The study attributes the alteration of groundwater potential to changes in land use and land covers, increased land surface temperatures, decreased rainfall, and changes in soil erosion in the study region over the three decades. The results of this study offer valuable insights for decision-makers to make informed decisions for the sustainable and responsible management of groundwater resources.

Measuring Agro-Biodiversity through Leverage Factors: Land Use, Farmer Practices and Public Policies

Understanding the socio-economic channels through which farmers affect agro-biodiversity (ABD) represents a relevant research area, especially in the light of the new sustainable development paradigm. Supporting ABD is one of the main goals of the EU Green Deal and the agricultural sector is being called on for a higher commitment. Nowadays, ABD interventions are linked not only to the genetic and natural resources of species, but also to farming practices, land management, living standards in rural areas and all the policy interventions supporting them. However, the existing literature is still mainly focused on the environmental and agronomic perspectives. This paper aims to assess the extent to which different socio-economic and policy factors affect the performance of farmers in supporting ABD at the territorial level. Starting from the FADN data and focusing on Italy, we built a new regional comprehensive indicator that accounts for three levers through which farmers mostly interact and can influence ABD: land use strategies, agriculture practices and management decisions, and Common Agricultural Policy (CAP) funds. Results reveal a heterogeneous spectrum of indicator scores at the regional level. Land use strategies have a significant relevance for the North-East regions and the Islands (Sicily and Sardinia), whereas agricultural practices emerge as the primary influential factors in the Centre and South. Policy funds dominate in the North-West, reflecting the greater expenditure capacity of the northern regions. These findings have important policy implications for the future of the CAP and the biodiversity EU strategy.

Determination of Financial Distress in Food And Beverage Sector Manufacturing Companies Listed in the Indonesia Stock Exchange

This study aims to analyze the factors that influence financial distress in manufacturing companies in the food and beverage industry sector in Indonesia. Factors studied include profitability, liquidity, operating capacity, and sales growth. The data used is the annual reports of companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The research method used is a quantitative method using multiple linear regression analysis. Data processing was performed using IBM SPSS 23 software. The results showed that liquidity had no significant effect on financial distress. Profitability has no significant effect on financial distress. The amount of operating profit in the current year has no significant effect on the overall financial condition of the company. The leverage factor shows a negative and significant effect on financial distress. Sales growth has no significant effect on financial distress. Acting capacity also has no significant effect on financial distress. Based on the results of this study, it was concluded that leverage is the factor that most influences financial distress in manufacturing companies in the food and beverage industry sector in Indonesia.