Panel Data Regression Research Articles

The Influence of Return on Equity and Debt to Asset Ratio on Financial Distress in Properties Subsector Companies and Registered Real Estate on the Indonesian Stock Exchange Period 2015-2023

This research aims to determine the effect of return on equity and debt to asset ratio on financial distress. The research method used is an associative descriptive method with a quantitative approach. The population in this research is the Properties and Real Estate subsector companies listed on the Indonesia Stock Exchange for the 2015-2023 period. The sample for this research was determined using a Purposive Sampling technique and obtained 4 companies in the Properties and Real Estate subsector with an observation period of nine years to obtain 36 sample data. Hypothesis testing in this research uses panel data regression analysis using the E-Views 12 program and the confidence level used is 5%. The results of this research show that simultaneously return on equity and debt to asset ratio have a significant effect on financial distress with a significance of 0.0000 < 0.05 and f-count > f-table (34.14013 > 3.327654499) and the coefficient of determination using Adjusted R-Squared is equal to 61.73% while the remaining 65.44% was influenced by other variables not examined in this research. Meanwhile, partially return on equity has a significant positive effect on financial distress with a significance of 0.0018 < 0.05 and t-count > t-table (3.387986 < 2.04227), debt to asset ratio has a significant negative effect on financial distress with a significance of 0.0004 < 0.05 and t-count > t-table (|-3.912824| > 2.04227).

Causes of Audit Report Lag with Reputation of Audit Firm as a Moderating Variable

Audit report lag is an important problem because it can cause delays in submitting financial reports by companies to the OJK. This study examines the effect of audit opinion, profitability, and company size on audit report lag with Reputation of audit firm as a moderating variable in non-primary consumer goods companies listed on the IDX. The sample used in this study were 78 non-primary consumer goods companies listed on the IDX 2018-2022. The data analysis method used in this research is panel data regression analysis and moderation regression analysis. The results of this study indicate that audit opinion and profitability have a negative effect on audit report lag, while company size has no significant effect on audit report lag. Reputation of audit firm is able to strengthen the effect of profitability on audit report lag and weaken the effect of company size on audit report lag and but is unable to moderate the effect of audit opinion on audit report lag.

Friendshoring: how geopolitical tensions affect foreign sourcing, supply base complexity, and sub-tier supplier sharing

PurposeThis paper examines the influence of geopolitical tensions—operationalized as political divergence between governments—on firms’ foreign supply bases and the resulting effects on supply base complexity and sub-tier supplier sharing.Design/methodology/approachThe authors conduct panel data regression analyses over the period 2003–2019 to investigate whether political divergence affects foreign supply bases for 2,858 US firms sourcing from 99 countries and to examine how political divergence exposure impacts the supply network structures of 853 US firms.FindingsFirms reduce their supply bases in countries exposed to heightened geopolitical tensions. These supply chain adjustments are associated with increased supply base complexity and greater sub-tier supplier sharing.Originality/valueThis study highlights the importance of state relations in global supply chain reconfiguration. Political divergence between governments provides a dual-view of political risk (i.e. buyer–supplier countries), which can help firms anticipate geopolitical disruptions. While reducing supply bases in foreign countries facing heightened geopolitical tensions is intended to mitigate disruptions, these supply base adjustments are linked to increased supply base complexity and sub-tier supplier sharing, thereby exposing firms to other types of supply disruptions. Additionally, this research contributes to understanding the effects of geopolitical tensions on supply base complexity through the lenses of transaction cost economics and resource dependence theory.

The Influence Of Economic Value Added (EVA), Return On Assets (ROA) On Stock Prices With Market Value Added (MVA) As A Moderating Variable

The aim of this research is to ascertain the influence of Economic Value Added (EVA), Return on Assets (ROA) on stock prices with Market Value Added (MVA) as a moderating variable in retail sector companies on the Indonesian Stock Exchange for the 2017-2022 period. The research methodology used is a quantitative method. The research population and sample consisted of 30 data. In this research, the data collection techniques used in this research were documentation and library research techniques. Data were analyzed using panel data regression, Microsoft Excel 2010 and Eviews Version 12 were used to process the data. Findings: The results of the t test (partial) on the Economic Value Added (EVA) variable (X1) obtained a calculated t value of 0.434167 < t table, namely 2.048407142 and a sig value. 0.6676 > 0.05, then H1 is rejected. The results of the t test (partial) on the Return on Assets (ROA) variable obtained a calculated t value of 12.77570 > t table, namely 2.048407142 and a sig value. 0.0000 < 0.05, then H2 is accepted. The results of the t test (partial) on the moderating variable Market Value Added (MVA) are able to moderate Economic Value Added (EVA) and obtain a sig level value. is 1.288399 > 0.05 and the sig.prob value is 0.2094 < 0.05, then H3 is accepted. The results of the t test (partial) on the Market Value Added (MVA) moderating variable are able to moderate the Return on Assets (ROA) to obtain a sig level value. is -0.916624 < 0.05 and the sig.prob value is 0.3681 > 0.05, then H4 is rejected.

Maximizing Profit Growth: How Net Profit Margin And Return On Assets Interact With Firm Size

This study aims to analyze the effect of net profit margin and return on assets on profit growth by adding firm size as a moderating variable in property and real estate companies listed on the Indonesia Stock Exchange. The population in this study comprises property and real estate companies listed on the Indonesia Stock Exchange from 2019 to 2023. The sampling technique is determined using purposive sampling based on criteria set by the researchers, resulting in a sample of 52 property and real estate companies. Panel data regression and moderated regression analysis (MRA) are used to analyze the data. The results of this study indicate that the net profit margin variable does not affect profit growth, while return on assets has a significant effect on profit growth. Furthermore, firm size can moderate the effect of net profit margin on profit growth. However, firm size cannot moderate the effect of return on assets on profit growth. Based on the results of this study, it is expected that future researchers can add other factors that may influence profit growth. In selecting moderating variables, it is hoped that future researchers will choose appropriate moderating variables to strengthen profit growth.

The Effect of Dividend Yield on The Volatility of Stock Prices of IDX30 Index Companies Listed on the Indonesia Stock Exchange for the 2019-2023 Period

This study investigates the influence of Dividend Yield on Stock Price Volatility in companies included in the IDX30 index on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. Utilizing secondary data from annual reports of IDX30 companies, panel data regression analysis was conducted to examine the relationship between the variables. The findings reveal that Dividend Yield positively affects Stock Price Volatility, contradicting the initial hypothesis. The results indicate that an increase in Dividend Yield leads to higher Stock Price Volatility, while a decrease in Dividend Yield results in lower Stock Price Volatility. This research provides valuable insights for investors in understanding the dynamics between dividend policies and stock price fluctuations.

The role of innovation strategies in balancing growth and profit: evidence from Colombian firms

ABSTRACT Research highlights the significant impact of exploratory, exploitative, and ambidextrous innovation strategies on firm performance. Ambidextrous innovation is particularly effective, enhancing performance in both emerging and developed markets. However, the differential effects on growth and profitability in resource-constrained emerging markets are still not fully understood. This study employs panel data regression to analyze the influence of these innovation strategies on 1047 Colombian manufacturing firms from 2007 to 2018, with a specific focus on the moderating role of diverse knowledge sources. Findings indicate that ambidextrous innovation positively correlates with both growth and profitability. In contrast, firms focusing solely on either exploratory or exploitative strategies experience negative impacts on domestic growth. The integration of a broad range of knowledge sources further amplifies the positive effects of ambidextrous innovation. This research provides valuable insights for effectively leveraging innovation strategies in emerging markets, offering a strategic framework for firms and policymakers in resource-constrained environments.

Fundamental VS Makro Ekonomi on Stock Price : Indonesian Stock Exchange (IDX)

Geopolitical tensions especially those occurring in the Middle East, have significantly impacted the world economy. This impact was also felt by the Indonesian state, which impacted company share prices which experienced a decline due to geopolitical tensions, including the banking sector. Apart from geopolitical tensions, several other factors, such as the company's fundamental factors, also influenced the decline in share prices. Fundamental factors play an important role in determining a company's share price. These factors refer to various elements and variables that reflect the company's financial condition, operations, and prospects. So quite a few investors use fundamental analysis to assess whether current share prices reflect the company's true intrinsic value. This study seeks to reassess the elements affecting banking share prices by incorporating macroeconomic control variables related to these concerns to enhance the robustness of the findings. Utilizing a quantitative approach through panel data regression, the research focuses on banks listed on the Indonesia Stock Exchange from 2019 to 2023, with a sample of 16 companies meeting the selection criteria. The results reveal that Debt Equity Ratio (DER), Return On Assets (ROA), Return On Equity (ROE), GDP, inflation, and exchange rates collectively have a positive and significant impact on stock prices. However, when analyzed individually, only ROE and exchange rates show a significant effect, while DER, ROA, GDP, and inflation do not.

Navigating Economic Uncertainties: The Role of Technological Innovations in Enhancing Supply Chain Resilience

This study explores the multifaceted impact of economic indicators, financial market dynamics, and technological innovations on supply chain efficiency and resilience. Through comprehensive quantitative analyses, including panel data regression, multivariate regression, and time-series analysis, we dissect the relationship between GDP growth rates, inflation, unemployment rates, interest rate fluctuations, exchange rate volatility, stock market trends, and supply chain performance metrics. Our findings highlight a significant correlation between economic growth and supply chain efficiencies, the exacerbating effect of inflation and unemployment on supply chain costs and demand, and the nuanced impacts of financial market dynamics on supply chain financing and operational strategies. Moreover, we delve into the transformative potential of digitalization, automation, blockchain technology, and advanced analytics in mitigating risks associated with economic fluctuations and financial uncertainties. The empirical evidence suggests that technological innovations not only enhance supply chain resilience but also offer strategic advantages in navigating the complexities of global economic landscapes. This study underscores the critical need for adaptive strategies that leverage technological advancements to sustain supply chain competitiveness in an era of economic and financial volatility.

Do Transfer Pricing, Capital Intensity, Institutional Ownership and Managerial Ownership Affect Tax Avoidance: Case Study on the Mining Industry Listed on the Indonesia Stock Exchange (IDX) for 2019-2022 Period

This study aims to analyze the impact of institutional ownership, managerial ownership, capital intensity, and transfer pricing on tax evasion. This study applies a quantitative method with an associative approach. The data used are secondary data obtained through the analysis of financial statements of mining companies that were active during the period 2019 to 2022 and listed on the Indonesia Stock Exchange (IDX), with data collection techniques through internet searches. Purposive sampling was used to select the sample, and all mining companies listed on the IDX during that time period are included in the study population. Panel data regression of Eviews 10 statistical software was used to analyze the data. The results of the study show that simultaneously, Transfer Pricing, Capital Intensity, Institutional Ownership, and Managerial Ownership have a significant influence on tax avoidance in the mining sector listed on the IDX for the period 2019-2022. Specifically, Transfer Pricing and Institutional Ownership have a negative influence on tax avoidance, while Capital Intensity and Managerial Ownership do not show a significant influence on tax avoidance in the sector.

Map to prosperity: Natural resource revenue sharing and infrastructure development in Indonesia

The well-being of society can be realized through meeting basic needs, one of which is providing public infrastructure. This study examines the role of Natural Resource Revenue Sharing Funds (DBH SDA) on government investment in infrastructure in 491 regencies/cities in Indonesia. The testing in this research uses panel data regression analysis. The results show that per capita DBH SDA in Indonesia during the study period of 2010–2012 has a significant and positive influence on government investment in infrastructure. The selection of this period is based on the consideration that a resources boom has occurred, where there is an increased global demand for natural resource commodities followed by an increase in commodity prices, thereby positively impacting revenue for countries or regions abundant in natural resources. Despite DBH SDA having a significant and positive influence, regional spending on infrastructure tends to be more influenced by central government transfers such as General Allocation Fund (DAU), Special Allocation Fund (DAK), and Local Own-source Revenue (PAD). It was found that government investment in infrastructure tends to be influenced by transfer funds, indicating that the role of the central government remains significant in determining the infrastructure expenditure of regencies/cities in Indonesia.

Determinant of Local Government Performance Based on the SDG (Indonesian Evidence)

Objective: The purpose of this study is to ascertain how report quality, e-government, and accountability affect local governments' financial performance both inside and outside of Java. Theoretical Framework: When implementing regional autonomy in Indonesia, it is necessary to take into account the issue of disparities in the financial performance of regional governments within and outside of Java. The financial performance of local governments is anticipated to increase with the introduction of e-government, accountability, and high-quality financial reports. Method: From 2021 to 2022, the study was carried out on all local governments in Indonesia. The Ministry of Home Affairs database, the official websites of local governments, and the financial audit agency's official website were the sources of the data. Panel data regression was used to analyze the data. Results and Discussion: According to the study's findings, local governments' financial performance both inside and outside of Java was unaffected by accountability. The financial performance of governments on the island of Java is positively impacted by e-government, whereas governments outside of Java experience negative effects. Both inside and outside of Java, regional governments' financial performance is unaffected by the caliber of their financial reports. Research Implications: The study's findings can be used as a guide when formulating policies to raise of local government financial performance. Originality/Value: This is one of the few studies that compares the local governments' financial performance within and outside of Java Island, Indonesia.

Environmental greenwashing in Japan: the roles of corporate governance and assurance

PurposeGreenwashing is defined as the overstatement of companies’ environmental disclosures relative to their performance. This paper aims to develop a greenwashing measure, examines its relationship with environmental performance and investigates the mitigating effects of Japanese firm-level corporate governance characteristics (corporate structure, board leadership, foreign share ownership, ratio of independent directors and ratio of directors’ variable compensation) and third-party assurance of environmental information on the extent of greenwashing.Design/methodology/approachThis paper analyzes a sample of 420 firm-year observations from the period between 2018 and 2019 from Japanese listed companies that responded to the CDP Climate Change survey via probit/logit and multivariate panel data regression models.FindingsThis paper finds that the probability of engaging in greenwashing is negatively associated with environmental performance, which supports the reliability of the study’s greenwashing measure. Japanese firm-level corporate governance characteristics are ineffective at mitigating greenwashing. This paper also finds that assurance carries a significant risk of being exploited by companies involved in greenwashing to increase the degree of their overstatement.Practical implicationsThe findings have significant implications for investors, who should increase scrutiny and skepticism of environmental disclosures, particularly from companies with poor environmental track records. Japanese companies should consider strengthening their corporate governance to ensure the effective oversight of environmental disclosure and performance. Regulators and standard setters should implement stricter guidelines for and oversight of environmental information assurance.Originality/valueNo empirical study has examined the effectiveness of Japanese corporate governance characteristics and environmental disclosure assurance on the mitigation of greenwashing.

The Influence Of Financial Performance, Audit Quality, Earnings Management On Tax Avoidance With Capital Intensity As A Moderating Variable

This study aims to analyze and provide empirical evidence on the influence of profitability on tax avoidance; the influence of leverage on tax avoidance; the influence of audit quality and earnings management on tax avoidance; the moderation effect of capital intensity on the relationship between profitability and tax avoidance; the moderation effect of capital intensity on the relationship between leverage and tax avoidance; and the moderation effect of capital intensity on the relationship between audit quality and earnings management with tax avoidance. The research methodology employed is quantitative. Secondary data sources consist of financial reports from companies in the infrastructure sector listed on the Indonesia Stock Exchange during the period 2020-2022. The population comprises companies in the infrastructure sector, with a sample size of 111 selected using purposive sampling based on specified criteria. The research employs panel data regression analysis, with data processed using Eviews version 12. Partially, the study finds that ROA, leverage, and audit quality significantly influence tax avoidance, while earnings management does not significantly affect tax avoidance. Capital intensity strengthens the influence of ROA and earnings management on tax avoidance, while weakening the influence of leverage and audit quality on tax avoidance.

The Influence of Loan at Risk and Bank Spesific Variables on The Profitability of Commercial Banking in Indonesia Based on Core Capital: Period 2015 to 2022

This research aims to examine the influence of loan at risk (LAR) and other specific bank variables, namely size, leverage, and capital, on the profitability of commercial banks in Indonesia based on the classification of core capital set by banking authorities. The study utilizes panel data regression with a balanced fixed-effect model from a sample of 67 examined commercial banks, both in aggregate and based on the core capital classification of each bank, covering the research period from 2015 to 2022. The results indicate that the credit asset portfolio with LAR quality significantly affects the profitability of commercial banks negatively, both in terms of ROA and ROE, applying to the entire group of commercial banks studied. Meanwhile, other specific variables have varying degrees of influence and significance. Collectively, the independent variables in all research models have a significant impact on the profitability of all commercial banks in Indonesia. The findings of this study can contribute to the reference for bank management and other stakeholders in assessing the profitability performance of commercial banks, as well as expanding the literature in the field of banking.

The dark side of stock repurchases: do they affect marketing capabilities?

Purpose This study aims to investigate the effect of stock repurchase – firms buying back their own stocks – on firm performance, focusing specifically on the role of marketing capability. The authors also investigate the moderating influence of competitive intensity on this effect. This research sheds light on how marketing capability explains the negative effect of stock repurchase on firm performance, and how this effect varies in different competitive intensity environments. Design/methodology/approach The authors test their hypotheses using US firm-level longitudinal data collected from a sample set of firms obtained from the Compustat database for the 1989–2015 period. The authors specify a panel data regression model to test the hypotheses. Findings The authors find that adoption of stock repurchase ultimately results in a decrease in firm performance, through a decrease in marketing capability. The authors also find that the indirect effect of stock repurchase on firm performance is moderated by firm competitive intensity, such that at higher levels of competitive intensity, the negative relationship between stock repurchase and marketing capability will become amplified and at lower levels of competitive intensity, the negative relationship between stock repurchase and marketing capability will get attenuated. Research limitations/implications This study indicates that the risk from stock repurchase is the diversion of funds from other beneficial activities such as marketing budgets, leading to lowered marketing capability. Practical implications This study's results will help managers improve their understanding of the dark side of the stock repurchase strategy and help take corrective action. Originality/value The present study empirically tests the effects of stock repurchase on marketing capability and firm performance.

The Influence of Enterprise Risk Management, Corporate Social Responsibility, Cost of Capital, and Firm Size on Firm Value

Implementing corporate social responsibility (CSR) and enterprise risk management (ERM) is becoming more important, since it is an indication of a long-term sustainable business. Investigating the effects of ERM, CSR, cost of capital (CoC), and company size on the value of manufacturing sector enterprises in Indonesia is the aim of this study. 56 manufacturing companies that are listed on the Indonesia Stock Exchange and that provide annual reports and detailed financial statements for the fiscal years 2016 through 2019 make up the study’s sample. Firm value is proxied by the Tobins’q (TQ) value. CoC is determined using WACC, CSR is evaluated using each company’s disclosure index, and the firm’s size is indicated by LnTotal Assets. The data in Eviews 12 was analyzed using panel data regression. The study results show that CSR and ERM are essential to raising a company’s worth. The company value increases with the degree of ERM and CSR adoption. The study also found a significant negative correlation between company size and worth. However, this study is unable to show how capital expenses affect the value of a company. Keywords: CSR, cost of capital, enterprise risk management, firm size, firm value

Impact of Inflation and Financial Ratios on Dividend Distribution in Healthcare Sector Companies Listed on the Indonesia Stock Exchange (2020-2022)

Objective: To examined the influence of inflation, current ratio, debt to equity ratio, and return on equity on dividend distribution in health sector companies during the 2020 to 2022 period, because this period includes the COVID-19 pandemic. Study Design: This kind of research is quantitative and depends on the Indonesia Stock Exchange for the acquisition of secondary data. Study Location and Duration: 2020–2022 listings of health sector firms on the Indonesia Stock Exchange. Methodology: Purposive sampling was used in this study to identify 10 companies that met the objectives of the investigation. The analysis technique used is panel data regression, the analysis tool EViews 12. Results: Research findings show that inflation, DER, and ROE do not have a significant negative impact on dividend distribution, while CR shows a significant positive impact. This shows that liquidity plays an important role in dividend distribution decisions during the Covid 19 pandemic. TImplication: This study underscores the importance of maintaining adequate levels of liquidity for healthy companies when determining dividend policy, especially during the Covid 19 pandemic. Investors and policymakers are advised to consider these factors when evaluating a company's financial health and dividend prospects.

Impact of Cost Structure on Indonesia Food Industry Value Added

The food industry is a consistently growing sector, even in challenging economic conditions, driven by population growth and increased demand. Recognizing its importance, the Indonesian government has identified the food and beverage industry as a key sector in its Industry 4.0 roadmap. However, challenges such as reliance on imported raw materials and high labor absorption rates persist. This study analyzes the impact of cost structure on the value-added in Indonesia's food industry from 2017 to 2021, using data from Indonesia Statistics on large and medium industries. The Panel Data Regression results reveal that raw material costs and fixed capital costs positively and significantly affect value-added. These findings suggest that effective cost management, innovation, and the use of advanced technology are crucial for optimizing value-added in this sector.

Pengaruh Struktur Modal, Pertumbuhan Penjualan dan Arus Kas Operasi terhadap Harga Saham

This study looks at how capital structure, sales growth, and operating flow have an impact on stock prices. The purpose of this study is to see how capital structure, sales growth, and operating flow have an impact on stock prices simultaneously and partially. This study uses a quantitative descriptive scheme. Non-cyclical consumer companies listed on the IDX during the period 2018–2022 are the subjects of this study. Using the purposive sampling technique, this study was quantitative descriptive and collected 18 samples of companies over five years, which resulted in 90 observational data with secondary data. Data analysis includes descriptive statistics and panel data regression tests. The results show that, overall, capital structure, sales growth, and operating cash flow affect stock prices; Only the capital structure affects the price partially, and the growth of sales and operating cash flow does not affect the price significantly.