Debt Management Research Articles

Analisis Performa Keuangan Perusahan pada PT Indofood Sukses Makmur, Tbk Periode 2018-2023

This research is analyzing financial performance of PT Indofood Sukses Makmur, Tbk from 2018-2023 using liquidity, probability, solvency and activity. The objective of this study is to assess the company's ability to overcome challenges, particularly during the COVID-19 pandemic, and to understand the strategies it implemented in response. Data for this research was sourced from financial reports on the Indonesia Stock Exchange and analyzed using a quantitative descriptive approach. The study finds that the liquidity ratios show a positive trend, with an average Current Ratio of 145.9% and a Quick Ratio of 104.7%, indicating the company's strong capacity to meet short-term liabilities. Profitability remains stable, with an average Return on Investment (ROI) of 6.3% and Return on Equity (ROE) of 12.1%, reflecting the company's efficiency in generating profits. The solvency analysis, based on the Debt to Asset Ratio (DAR) averaging 48.2%, shows a balanced level of debt, while the decreasing Debt to Equity Ratio (DER) suggests improved debt management. The activity ratios, including Total Asset Turnover (TAT) and Fixed Asset Turnover (FAT), highlight consistent efficiency in utilizing assets to drive revenue. Despite the challenges posed by the pandemic, PT Indofood Sukses Makmur, Tbk has maintained solid financial health, demonstrating robust liquidity, stable profitability, and effective solvency and asset management. This research aims to contribute to financial literature and serve as a reference for both companies and investors in making informed strategic decisions.

Tatakelola Utang dan Pembangunan Ekonomi Indonesia: Studi Komparasi Antar Rezim Pemerintahan

ABSTRACT Research aims to analyze the effect of debt and differences in government regimes on economic growth. and poverty in Indonesia, (1940-2017). The study uses secondary data obtained from Bank Indonesia, National Development Planning Agency (Bappenas), the Central Statistics Agency (BPS), the World Bank, and other reference sources such as books, journals and scientific papers. The data used are the value of foreign debt, national income (GDP), population, number and ratio of the poor population, inflation rate in the period 1949 - 2021. The results of multiple regression analysis show: Foreign debt has a correlation with national economic conditions, especially the GDP and poverty. Debt tends to increase GDP and reduce poverty. In terms of debt a driver of the economy and poverty, the Soeharto Era and Habibie's Era tend to be different and better than the Soekarno Era. While Era Abdurrahman Wahid's debt management, Megawati Era, SBY Era and Jokowi's Era were no different or no better than Sukarno's Era. Although nationally can increase GDP and reduce poverty, debt cannot improve people's welfare. Foreign debt even tends to reduce the level of welfare of the people. This applies to all government regimes. Keywords: Debt, Development, GDP,Indonesia, Poverty

Gender Gaps In Financial Literacy: A Study Of English Literature Students

Financial literacy encompasses the knowledge, skills, and confidence to make informed financial decisions and is critical to individual and societal well-being. The gender gap in financial literacy is widespread and persistent. Using Chen and Volpe’s (1998) framework, this study aims to examine the level of financial literacy of English Literature study program students from a gender perspective. This study used a quantitative descriptive method, with data collected from 77 seventh-semester students through a validated questionnaire. The results showed an overall moderate level of financial literacy, with an average correct answer rate of 73.2%. Personal financial planning emerged as the most vital domain, while debt management was the weakest domain. Analysis from a gender perspective showed that female students had a higher average score (73.94%) than male students (69.8%), although there was more significant variability in scores among female students. These results suggest that female students generally have better financial literacy. Women are more engaged in financial literacy learning when the material is relevant to their personal or social needs, such as household budget planning and future financial security.

Financial Literacy for the Future: Preparing Individuals for Economic Success

Financial literacy encompasses the knowledge and skills essential for making informed financial decisions, impacting both personal and professional lives. This study explores the significance of financial literacy in navigating today's complex financial landscape, emphasizing its role in budgeting, saving, investing, debt management, retirement planning, and understanding financial products. It highlights the necessity of financial literacy for achieving financial stability, independence, and overall well-being, as well as its contribution to a stronger economy. Case studies, such as a family's successful debt reduction strategy and a business's effective budgeting process, illustrate how financial literacy leads to improved outcomes. The findings highlight the need for targeted financial education programs and policies that can bridge knowledge gaps and empower individuals to make better financial choices. The study reviews existing literature on financial literacy, noting disparities in knowledge across demographics and the challenges in translating knowledge into effective financial behavior. Ultimately, improving financial literacy is integral to enhancing economic well-being and fostering more equitable financial systems.

Are public debt and public debt expectations associated with debt management strategies?

With the adoption of the inflation targeting regime in Brazil, the Brazilian public debt indexation structure underwent major transformations. Furthermore, public debt management strategies changed even more radically after the 2008 global financial crisis. Thus, this paper investigates the relationship between the debt indexation strategy, the type of debt indexation structure and the maturity of public securities with public debt and public debt expectations in Brazil. Regarding the debt indexation strategy, we created an indicator that shows whether the debt indexation structure is tending towards a middle-ground composition with respect to the proportions of the indexers, or whether it is tending towards a divergent composition. This indicator enables verifying whether a partial debt indexation strategy is successful in controlling both the public debt and public debt expectations, as this strategy would have the capacity to mitigate risks. Estimates are made for the total sample and for a sub-sample that represents the new debt indexation profile. The results show that a middle-ground debt indexation structure is associated with lower public debt and lower public debt expectations. The findings also reveal that a strategy of replacing floating-rate debt securities with fixed-rate debt securities and price-index debt securities is associated with lower public debt and lower public debt expectations. For the period related to the new debt indexation profile, these associations of a strategy of replacing debt securities as well as a middle-ground composition strategy with public debt and public debt expectations become stronger.

How does local government debt governance affect corporate credit mismatches? Evidence from implementing the New Budget Law

This study explores the impact of the New Budget Law, representing local government debt governance, on corporate credit discrepancies. Findings indicate that the New Budget Law can reduce corporate credit mismatch allocation based on the data from 2011 to 2022. Furthermore, the positive effects are achieved by reducing financing costs, increasing the availability of corporate finance, and reducing the negative impact of corporate credit mismatch. The results contribute to the restructuring of the local debt management system by providing a basis for decision-making and insights into establishing an efficient government and attaining robust economic growth.

Analysis of the application of financial management to the profitability of MSMES through debt management of MSME Players in Kwala Serapuh Village, Langkat

This study aims to analyze the effect of financial management implementation on the profitability of Micro, Small and Medium Enterprises (MSMEs) through debt management. The case study was conducted on MSME players in Kwala Serapuh Village. Good financial management is key to the sustainability and success of a business, especially MSMEs that have limitations in terms of capital and resources. This research uses quantitative methods by distributing questionnaires to MSME actors in Kwala Serapuh Village. The number of samples in this study were 50 respondents of MSME actors. Data analysis was carried out using the Partial Least Square (PLS) method using SmartPLS version 4 software. PLS is one of the methods of solving Structural Equation Modeling (SEM). The results showed that the variable of financial management implementation has a positive and significant influence on debt management. The variable of financial management implementation has a positive and significant influence on the profitability of MSMEs. The debt management variable has a positive and significant influence on the profitability of MSMEs. The variable of financial management implementation on MSME profitability through debt management has a positive and significant influence on MSME profitability. The debt management variable can be influenced by the application of financial management by 76.1% and the remaining 23.9% is influenced by other variables outside those studied. While the MSME profitability variable can be influenced by the application of financial management and debt management by 50.9% and the rest is influenced by other variables outside the study.

Decoding Financial Performance: The Role of Leverage and Market Risk in Indonesia's LQ45

This study examines the determinants of financial performance in LQ45 Index companies from 2018–2022. It focuses on factors such as equity multiplier, interest coverage, financial leverage, fixed charge coverage, debt to EBITDA, capitalization ratio, and market risk. Control variables include company age, sales growth, and firm size. Using multiple regression analysis on data from 48 companies, the study finds that interest coverage, fixed charge coverage, market risk, company age, and sales growth positively impact financial performance, while financial leverage, debt to EBITDA, capitalization ratio, and firm size have a negative effect. The equity multiplier shows no significant influence. The findings suggest maintaining high interest and fixed charge coverage ratios and effective risk management to enhance financial performance. Careful management of high debt to EBITDA levels is necessary to prevent negative impacts. Investors should consider these factors when assessing a company's financial health.

Pengaruh Struktur Modal, Profitabilitas, Dan Price To Book Value Terhadap Harga Saham

The purpose of this research is to analyze the correlation between capital structure, profitability, and stock market value, proxied by the price-to-book ratio. The capital structure variable is measured using DER, while profitability is measured using the ROA. In this study, the data used comes from the financial statements of property and real estate companies listed on the IDX during the period of 2020 to 2023. This study applies multiple linear regression analysis with the help of SPSS to process data obtained from 22 purposively selected companies over four years. The research concludes that capital structure and profitability are crucial factors that can influence stock prices. These results indicate that companies need to focus on improving profitability and maintaining healthy debt management to enhance their value in the eyes of investors. Additionally, investors should not rely solely on the PBV when evaluating investment prospects.

How Does the “Belt and Road” Initiative Affect Debt Sustainability?

The Belt and Road Initiative (BRI) has opened new financing channels, promoting sustainable debt management and high-quality economic growth in China and BRI-participating countries. This paper, using sample data from 64 BRI-participating countries and 40 non-BRI countries from 2002–2021, employs the difference-in-differences (DiD) method to examine BRI impacts on government debt sustainability. Empirical results passing robustness tests reveal heterogeneous effects. Findings indicate: first, the BRI enhances government debt sustainability in participating countries; second, government spending, foreign direct investment, and international trade moderate economic development; third, the BRI exhibits heterogeneity by income, debt levels, and growth rates. The study demonstrates the BRI alleviates “debt anxiety” and injects new momentum into global economic governance system improvement and innovation, ensuring stable macroeconomic operation and high-quality economic growth.

The Influence of Financial Management Practices on Company Performance: Analysis of Cash Flow, Debt, Working Capital, and Capital Structure

This research explores the relationship between financial management practices and corporate performance. It aims to analyze how key components such as cash management, debt management, working capital management, and capital structure impact the financial outcomes of firms, using performance indicators like Return on Assets (ROA) and Return on Equity (ROE). The study highlights the importance of efficient cash flow management, strategic debt usage, and optimized working capital in driving profitability and stability. Additionally, the research identifies how technology, particularly financial management software and big data analytics, plays a pivotal role in enhancing decision-making processes. The findings suggest that companies adopting a balanced approach to financial management, coupled with technological advancements, experience better financial performance and long-term sustainability. This paper provides actionable insights for business managers, financial analysts, and policymakers aiming to improve financial management strategies.

Integrated Financial Management System and Financial Control in Uganda: A Review of Issues and Concerns

Purpose: This study aimed to analyze the issues and concerns within the government’s policy on Integrated Financial Management System as a financial control in Uganda. Methodology: The study adopted a literature review approach in which the reviewers identified, assessed and studied obtainable literature from a variety of sources majorly on line and from the government libraries. Results: The review indicated that IFMS contributed to financial control in many ways, such as enhanced internal controls, improved budget execution and control as well as strengthened cash and debt management. However, a number of challenges emerged mid-way viz, resistance to change, inadequate user training, technological challenges and weak project management. To counter, the challenges there is need to strengthen change management strategies, enhance capacity building and training, improve technological infrastructure and integration, strengthen governance, and ensure strong political commitment and support. Unique contribution to theory, practice and policy: This review contributes to the understanding and further appraisal of the government policy on IFMS learning from its successes as a way of thwarting the emerging threats and failures. The review encourages for a deliberate investment in comprehensive training programs for users at all levels to ensure they understand FMIS functionalities and can utilize them effectively; regularly reporting on the IFMS performance and sharing lessons learned with key stakeholders so as to promote transparency, accountability, and continuous improvement; Developing a robust and resilient IT infrastructure and establishing robust data quality assurance processes to validate the accuracy and reliably of information entered into IFMS, ensuring decision making is based on reliable data.

The Influence of Liquidity, Leverage, Profitability, and Operating Cash Flow on the Possibility of Financial Distress of PT. Waskita Karya (Persero) Tbk for the Period of 2014 – 2023

This study aims to analyze the influence of liquidity, leverage, profitability, and operating cash flow on the possibility of financial distress at PT Waskita Karya (Persero) Tbk during the period of 2014-2023. Using multiple linear regression methods, this research processes financial data obtained from annual financial statements. The analysis results indicate that liquidity and leverage have a significant negative effect on the likelihood of financial distress, while profitability shows a significant positive effect. Operating cash flow does not demonstrate significant influence within this model. The research model has a fairly good explanatory capacity, with an adjusted R-squared of 63.73%. These findings suggest that effective working capital management and strategic use of debt can reduce the risk of financial distress; however, aggressive growth strategies reflected in high profitability increase that risk. This research provides insights into the financial dynamics within Indonesia's construction industry and can assist in formulating more effective risk management strategies.

THE LIFE CYCLE THEORY AND PERMANENT INCOME THEORY IN HOUSEHOLD FINANCIAL SUSTAINABILITY

This article explains the interplay between the Life Cycle Theory (LCT) and Permanent Income Theory (PIT) in the domain of household financial sustainability. By integrating these two prominent frameworks, it offers a comprehensive approach to understanding how households manage their financial activities across their lifetimes. Considering the criticisms of both consumption theories, the article aims to provide valuable insights into distinct aspects of household personal sustainable finance, particularly in the areas of debt management and repayment, assessing sustainable consumption behavior, household expenditure and investment patterns, as well as the utilization and reduction of debt. Integrating these two theories presents a more holistic understanding of household financial sustainability.

Indonesia’s External Debt Odyssey: Impact of Fiscal and Political Changes from 1999 to 2023

This study aims to identify the factors influencing Indonesia’s dependence on external debt. The data utilized in this research consist of a time series covering the period from 1999 to 2023 on a quarterly basis. The endogenous variable in this study is Indonesia’s external debt, while the exogenous variables encompass fiscal deficit, tax income, inflation rates, and the volatility index. The instrumental variables employed include lags of both endogenous and exogenous variables. Additionally, dummy variables are incorporated for the four government regimes. Two estimation models consistently present a coherent picture. The dynamic fixed-effect model utilized in this research indicates that dependence on external debt is a legacy of previous governments in both models. Historical factors from prior external debt play a pivotal role in determining Indonesia’s external debt level, and the impact of current and past tax revenue periods contributes positively to Indonesia’s ability to increase debt, even though only current tax revenue has a significant impact. Theoretically, fiscal deficits and global economic instability are considered important indicators, but this study found that neither has a consistent and significant influence on Indonesia’s external debt. Controlling inflation rates is also crucial in curbing borrowing behavior from foreign entities. Government regime transitions do not appear to contribute significantly to the management of external debt. Based on the R-squared adjustment test and the Wald test, it is revealed that the exogenous variables, instrumental variables, and dummy variables in this study effectively explain the variation of the endogenous variable.

Pengaruh Gaya Hidup Terhadap Pengelolaan Keuangan Pribadi Generasi Z

Quantitative methods were used in this study to determine how lifestyle impacts personal financial management. Lifestyle includes the decisions a person makes about how they live their daily lives, especially about how they spend their time and money. The process of effectively managing a person or family's income, expenses, and assets to achieve short-term and long-term financial goals is known as personal financial management. Planning, budgeting, investing, investing, and debt management are all part of this. This questionnaire was circulated and completed by 66 people. Validity, reliability, and classical assumption tests have been used to collect data. Simple linear regression analysis was also used in this research methodology. The results of this study show that lifestyle has a positive impact on personal financial management.

Faktor-Faktor yang Memengaruhi Harga Saham pada Bisnis Subsektor Makanan dan Minuman yang Terdaftar di IDX

This study aims to investigate the effects of the Current Ratio (CRA), Debt-to-Equity Ratio (DERA), and Return on Equity (ROEQ) on the stock prices (HS) of companies in the food and beverage sector listed on the Indonesia Stock Exchange (IDX) during the period from 2017 to 2022. The analysis utilizes data sourced from the published annual financial statements of the relevant companies, employing a purposive sampling method to select 17 companies from the food and beverage subsector as the research sample. This research employs a quantitative descriptive approach and multiple linear regression analysis processed with Eviews Version 12. The findings indicate that CRA does not have a significant effect on stock prices when analyzed separately. Conversely, ROEQ has a positive and significant impact on stock prices, while DERA shows a significant negative effect. These findings affirm that the three variables, namely CRA, DERA, and ROEQ, contribute to stock price fluctuations both individually and collectively. Therefore, this research recommends that companies in the food and beverage sector enhance their financial performance, particularly through better debt management and increased profits, in order to strengthen the attractiveness of their stock prices in the market and attract greater interest from investors.

Effective financial management in conditions of decentralization

The article is devoted to the study of decentralization's role in improving public finance management. Theprocess of decentralization, which involves the transfer of powers and responsibilities from central to local authorities, is aglobal trend aimed at improving governance, public service delivery, and local economic development by bringing thedecision-making process closer to communities. The article emphasizes that effective financial management, includingbudgeting, debt management, revenue generation, and transparent reporting, enables local governments to meetcommunity needs, maintain fiscal stability, and ensure accountability. The article examines vital legislative reforms inUkraine that have expanded the powers of local authorities, giving them greater control over budgets, taxes, and financialresources. Although decentralization offers significant opportunities, the study identifies challenges such as regionaldisparities, administrative constraints, and conflicts between central and local governments. Potential challenges confirmthe importance of institutional frameworks, financial resources, technological integration, and citizen participation toensure a successful decentralization process. Thanks to reliable financial practices and transparent management, localauthorities can improve the quality of public services and contribute to the state's economic growth and sustainabledevelopment.

Creating an Innovative Community for the Sustainable Self-reliant Debt Management and Community Mediation by Enhancing the Legal Skills of the Tha Fa Tai Community Leaders and Elders Through Active Learnings Methods

Creating an Innovative Community for the Sustainable Self-reliant Debt Management and Community Mediation by Enhancing the Legal Skills of the Tha Fa Tai Community Leaders and Elders Through Active Learnings Methods

Determinants of Inflation in Pakistan: A Comprehensive Analysis of Macroeconomic Variables (1991–2022)

This research paper investigates the determinants of inflation in Pakistan from 1991 to 2022, focusing on key macroeconomic variables such as imports, GDP growth rate, GDP per capita, military expenditure, population growth, total debt service, and unemployment. The main objective is to analyse the impact of these variables on inflation and provide policymakers with actionable insights. Utilizing annual time series data from reliable source World Bank WDI, the study employs descriptive statistics, correlation analysis, ADF unit root tests, regression analysis, and the Autoregressive Distributed Lag (ARDL) model. The findings reveal significant interdependencies among the examined variables. The correlation analysis shows strong positive relationships between inflation and imports and military expenditure, while GDP per capita and population growth negatively correlate with inflation. OLS results confirm that imports, GDP growth, and total debt service significantly raise inflation, whereas GDP per capita, military expenditure, and population reduce inflation. The ARDL model reveals that, in the long run, imports, GDP growth, and debt service positively affect inflation, while GDP per capita, population growth, and unemployment exert downward pressure. Short-run dynamics indicate that inflation quickly adjusts to economic shocks, with imports and GDP growth having an immediate impact. These findings highlight the importance of managing imports and debt, while promoting economic growth to maintain price stability. The policy implications emphasize the need for targeted monetary policies to manage imports and optimize debt service strategies, as well as policies aimed at enhancing economic growth and increasing per capita income. Effective debt management and strategic military spending are also vital for maintaining price stability. Despite its comprehensive analysis, the study identifies gaps such as the need for further exploration of structural breaks and non-linear effects in inflation dynamics, and the impact of external factors like global oil prices. The significance of this research lies in its contribution to understanding the complex economic interactions influencing inflation in Pakistan, providing a crucial resource for policymakers to develop effective strategies for economic stability in developing economies.