Manufacturing Industry Sector Research Articles

Does Capital Structure, Profitability, and Dividend Policy Improve Stock Prices?

Purpose: The aim of this study is to investigate how capital structure, profitability, and dividend policy impact the stock prices of companies in the consumer goods manufacturing industry sector listed on the Indonesia Stock Exchange from 2018 to 2020 Theoretical framework: The theoretical framework is based on agency theory and financial management. It focuses on the relationship between financial structure, profitability, dividend policy, and stock prices. Financial structure is measured by the debt-to-equity ratio, profitability by return on assets, and dividend policy by the dividend payout ratio. The framework highlights the fundamental factors that affect a company's financial performance, which in turn influence its stock price. Design/methodology/approach: The data utilized for this research is quantitative in nature, consisting of financial ratios and approached descriptively. Descriptive statistics and panel data regression analysis were employed for data analysis with the aid of the Eviews 12 Student version application. Findings: The Results of the research indicate that capital structure, profitability, and dividend policy have a simultaneous impact on the closing price of stocks. Partially, the debt-to-equity ratio, which proxies for capital structure, has a significant and negative effect on the stock price. However, return on assets, which proxies for profitability, does not seem to have any influence on the stock price. Moreover, the dividend payout ratio, which proxies for dividend policy, also does not seem to have an impact on the stock price. Research, Practical & Social implications: The findings can be used as a basis for further research on the impact of other financial factors on stock price. Investors can use the results to make investment decisions, such as adjusting their portfolio based on the capital structure and dividend policies of the company. The study contributes to the development of the Indonesian stock market by providing insights for investors, analysts, and companies on the factors that affect the stock price Originality/value: The emphasis on the importance of considering not only financial ratios but also external factors when making investment decisions. It highlights the need for companies to maintain good financial performance and keep their DER ratio under control to maintain investor confidence and ensure financial stability.

Pengaruh Debt Covenant Dan Tunneling Incentive Terhadap Transfer Pricing

Abstract: This study aims to examine and analyze the relationship between Debt Covenants and Tunneling Incentives on transfer pricing, with company size as the control variable for companies listed on the Indonesia Stock Exchange during 2019-2021. The population used in this study are companies from the manufacturing industry sector which are listed on the Indonesia Stock Exchange which also publish Financial Statements for 2019-2021. The samples in this study were 41 companies and the total number of observations was 123. The data collection method was downloaded from the IDX website. The analytical method used is multiple linear regression analysis. The results of testing the hypothesis in this study indicate that the Tunneling Incentive variable has a positive and significant effect on transfer pricing with firm size as the control variable, while the Debt Covenant variable has no positive and significant effect on transfer pricing with firm size as the control variable.
 
 Keywords: Transfer Pricing, Debt Covenant, Tunneling Incentive, Company size.

Reducing CO2 by Investing Solar Panel to Support Green Industry and Increasing Competitiveness Manufacturing Industry in Indonesia

Carbon dioxide emission (CO2) is one of the causes of climate change and global warming that affects air quality and threatens all creature’s lives. ASEAN countries have a big impact and Indonesia, as one of the ASEAN members, has a big contribution in increasing CO2 emission compared to other members, especially in the manufacturing industry sector. Indonesia has adapted the Green Industry and the Government supports renewable energy development and gives incentives such as tax allowance, tax holiday for large investment spur industrialization in Indonesia. Using solar panels is a manufacturer's strategy to fulfill demands and reduce the CO2 emission as targeted by the Government. This study is to examine the feasibility of the investment of solar panels to transform and adapt with climate change and to contribute to reducing the CO2 emission, increasing competitiveness in the manufacturing sector.

Analisis Struktur Kinerja Dan Kluster Industri Unggulan

Abstract. This change in the structure of the agriculture-based economy towards industry has resulted in many benefits to be gained from this change. The existence of regional superiority can indicate added value and high productivity due to the built competitiveness. This is related to the industrial sector which has a close relationship with the economic development of a country because the progress of the manufacturing industry sector is one indicator of a country's economic success. The manufacturing industry is an economic driving tool for a country in its efforts towards a better and more stable economy. The development of a strategic industry because it has great potential to develop in the future. Which is able to make industrial clusters a driver of Indonesia's economic growth

The effect of voluntary disclosure on financial performance: Empirical study on manufacturing industry in Indonesia.

The manufacturing sector's adherence to managing natural resources from the environment still needs to be improved. This study's objective is to determine how Corporate Social Responsibility (CSR) influences the financial performance of manufacturing firms featured in the LQ45 Index, as measured by Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). All manufacturing companies that are included in the LQ45 Index's population for this study were sampled using the purposive sampling method. This study uses secondary data from the CSRI based on the Global Reporting Initiative (GRI) G4 standard for 2018-2020 and the annual reports of companies in the manufacturing industry sector listed on the LQ45 Index. Moreover, applying a quantitative methodology, descriptive statistical methods, conventional assumption tests, and simple linear regression analysis were applied in this study's data analysis. The results of the study proved that CSR has a significant effect on ROA but does not affect the ROE and NPM of LQ45 manufacturing companies. In accordance with the signaling theory, CSR disclosure sends a favourable message to outsiders, which stakeholders and shareholders will respond to through changes in business earnings. CSR implementation can establish a positive image for the company, but it can also improve the company's image in both the commodity and capital markets. Investors will be more attracted to a company with a positive corporate image since a positive corporate image increases consumer loyalty. As consumer loyalty rises, the company's sales will likewise rise, and its profitability will increase as a result. This paper opens a new research path in corporate social responsibility and financial performance for possible links among variables; a matter that has not been previously explored in Indonesia Manufacturing Public Companies.

The Influence of Macroeconomic Variables on Problematic Financing in the Sector of Manufacturing

This study intends to examine how Indonesia's problematic manufacturing industry sector funding in Islamic banking is affected by macroeconomic factors such exchange rates, inflation, BI rates, and export growth. Monthly time series data from January 2018 to December 2022 were used in this investigation. The multiple linear regression test is the statistical analysis employed in this investigation. The findings demonstrated that the troublesome financing of the Manufacturing Industry sector was significantly influenced by a combination of macroeconomic factors, including exchange rate, inflation, BI rate, and export growth. Partly, the difficult financing of the Manufacturing Industry sector is significantly impacted by both inflation and the BI Rate in both positive and negative ways.

Financial development, institutions and industrialization in sub‐Saharan Africa

AbstractUsing a panel data covering more than 100 countries worldwide, we have estimated a dynamic panel model to investigate the relationship between financial development and manufacturing industries’ growth. More specifically, we have estimated the effect that institutional quality might have in this relationship in sub‐Saharan Africa (SSA). The results show that lower quality institutions in SSA are a hindrance to the role financial development plays in the growth of the manufacturing industrial sector, as compared with developed countries. These findings are robust when a quantile regression model is used. Furthermore, the results confirm that the relationship between per capita GDP and industrialization is nonlinear. Finally, in SSA, the abundance of natural resources has an adverse effect on the manufacturing industrial value added, providing more evidence for the Dutch disease hypothesis.

ANALISIS PENGARUH KINERJA KEUANGAN DAN NILAI TUKAR TERHADAP HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR

The purpose of this study is to analyze the effect of financial performance and exchange rates on stock prices in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2021. The method used in this study is multiple linear regression analysis on panel data using the Eviews 9 analysis tool and using a quantitative approach sourced from IDX data used by 95 companies and 3 manufacturing industry sectors. The results of this study are based on the F test that the variables CR, ROE, DER, PER & exchange rates have a joint effect on stock prices. Whereas in the t test (partial) the variable Return on equity (ROE) affects stock prices. This shows that CR has a positive and insignificant effect on stock prices, ROE & DER have a significant positive effect on stock prices, then PER & Exchange rates have a negative and insignificant effect so that it will have a positive impact on manufacturing companies where these companies are able to reduce the impact caused by the depreciation of the Indonesian exchange rate.

The Impact of Operating Profit Margin, Debt to Equity Ratio, and Current Ratio on Stock Prices of Manufacturing Companies in the Consumer Goods Sector Listed on the Indonesian Stock Exchange for the Period 2016-2018

This study aims to determine and analyze the impact of the Operating Profit Margin, Debt to Equity Ratio, and Current Ratio of manufacturing companies in the Consumer Goods Industry sector from 2016-2018. The independent variables in this study include the Operating Profit Margin, Debt to Equity Ratio, and Current Ratio, and the dependent variable is the Stock Price. Companies operating in the manufacturing sector of the consumer goods industry are companies with good prospects and are targeted by the public as investment targets. The sampling technique in this study uses purposive sampling with 41 companies sampled using a quantitative method, descriptive research type, explanatory research characteristics, and secondary data type. The population of this study is 51 manufacturing companies in the Consumer Goods Industry sector listed on the Indonesia Stock Exchange from 2016 - 2018. In hypothesis testing, this study uses Multiple Linear Regression Analysis. From the hypothesis testing in this study, it can be concluded that the Operating Profit Margin (OPM), Debt to Equity Ratio (DER), and Current Ratio (CR), which are independent variables, do not significantly influence the Stock Price of consumer goods industry sector companies listed on the Indonesia Stock Exchange for the period 2016-2018, which is the dependent variable. In addition, the partial hypothesis testing results in this study show that the Operating Profit Margin (OPM) does not significantly affect the Stock Price of consumer goods industry sector companies listed on the Indonesia Stock Exchange for the period 2016 - 2018, whereas the Debt to Equity Ratio (DER) and Current Ratio (CR) do not significantly affect the Stock Price of consumer goods industry sector companies listed on the Indonesia Stock Exchange for the period 2016-2018.

Sustainable production systems of urban agriculture in the future: a case study on the investigation and development countermeasures of the plant factory and vertical farm in China

IntroductionIn recent years, innovative sustainable agricultural production technologies, including vertical farms and plant factories, have been developing rapidly around the world. The development of plant factories and vertical farms is currently receiving a lot of attention from Chinese academia and industry. However, the recognition and satisfaction of the government, producers, sales companies, and consumers are low, and their attitudes are mixed, mainly due to high pre-construction and post-operation costs, low comprehensive utilization of resources, low product diversity, low market share, high prices, and low core competitiveness, which limit its healthy and sustainable development. This paper designed a questionnaire from the perspectives of industrialization, commercialization, and sustainability in order to understand the respondents' level of awareness, doubts and concerns, purchase intentions and consumption expectations, as well as their trust and recognition of branded products in this new agricultural production system.MethodTo determine the diversity of respondents, this paper examines the group structure of participants from management, research and development, manufacturing, sales, consumers, regional development, and other industrial sectors. The survey was conducted using both face-to-face interviews and electronic questionnaires. As an online survey, the questionnaire was distributed to social groups through social media platforms. A total of 729 valid questionnaires were submitted. For the purposes of categorizing, enumerating, compiling statistics, and analyzing the questionnaires used in this study, descriptive statistics, multi-factor cross-analysis, and other statistical methods were employed. The social roles, functions, and interaction styles of various plant factory practitioners are examined from the perspective of social relationships, and pertinent development concepts and suggestions are proposed based on the survey results.Results and conclusionsThe study found that an increasing number of consumers are understanding and accepting this new form of plant production and are willing to purchase plant products from plant factories and vertical farming. Plant factories and vertical farms are widely regarded as one of the most important methods of future urban agricultural production. Awareness, purchase intent, price expectations, brand awareness, and price expectations of plant factories and vertical farms varied significantly by gender, age, education level, occupation, and income. In addition, there are numerous findings that provide governments, producers, marketers, managers, and consumers with great value and assistance.Development recommendationsWe should take the opportunity of developing plant factories to adjust the structure of the plant industry, enrich the “vegetable basket” of urban residents, increase the supply capacity of the market, enhance agricultural modernization and technological innovation, improve the quality of agricultural products from plant factories, strengthen the brand sales of plant products, and develop more functional plant products with high added value. Through the development of plant factories and vertical farms, we can improve the nutrition and healthy diet structure of citizens' diets, increase the modern plant industry's contribution to the national economy, and promote the comprehensive and sustainable development of the urban productive plant industry.

Analisis Perkkembangan Industri Manufaktur Indonesia

In Indonesia, the manufacturing industry sector is a sector that is experiencing very rapid development. The manufacturing industry sector is very important for a country's economic development because of its contribution to national economic development goals, especially in the formation of a large GDP and its ability to increase high added value. The research method in this article uses descriptive qualitative analysis techniques. This study was conducted by describing facts, situations or circumstances. The data collected is secondary data, obtained from literature, journals, newspapers, and the Central Bureau of Statistics (BPS). The results of this study are that the development of the manufacturing industry in Indonesia has increased continuously over the last 5 years. Even though all countries were hit by the Covid-19 pandemic, the government quickly adopted policies to continue to improve economic development in Indonesia. Even though it is experiencing a pandemic condition, Indonesia's economic condition is said to be quite good. This is evidenced that in November 2019 Indonesia was in third place in the G20. Then in 2020 BankWord predicts that Indonesia's economic development will still be at a contraction rate of -2.2% and the realization will reach 2.07%. In 2021 the World Bank predicts Indonesia's development in the economic sector will reach 4.4% higher than Japan, Thailand and America.
 Keywords: Industry, Manufacturing, Economy

The Correlation between Awareness, Motivation, and Perception with Safe Behavior at Ngadiredjo Sugar Factory

Introduction: Sugar Factory (PG) Ngadiredjo is one of the manufacturing industry sectors where there are various stages of the production to process sugarcane into white crystal sugar. One of the risks of accidents in each production process is due to worker behavior. This study aims to analyze the strength of the correlation between awareness, motivation, and perception with safe behavior in engineering and processing section workers at PG Ngadiredjo Kediri. Methods: This research was an observational study with a cross-sectional approach. The sample of this study was 80 workers who were determined using the total population technique. Data collection techniques used questionnaires and safe behavior observations. The data obtained were analyzed descriptively using cross-tabulation and the Spearman correlation statistical test to determine the strength of the correlation between independent and dependent variables. Results: The results showed that most workers aged ≥ 36 years (42.5%), had a good level of awareness, good motivation, and fair perceptions. In addition, the results showed a strong correlation between awareness and perception with safe behavior and a very strong correlation between motivation and safe behavior. Conclusion: Based on the research results, there is a strong correlation between awareness and perception with safe behavior and a very strong correlation between motivation and safe behavior. The level of awareness, motivation, and perceptions of a worker will directly influence the level of his safe behavior.

DEKOMPOSISI PERTUMBUHAN PRODUKTIVITAS INDUSTRI MANUFAKTUR INDONESIA: PENDEKATAN STOCHASTIC FRONTIER

Productivity growth can be decomposed into its sources, namely technical changes, technical efficiency changes, and business scale changes. The role of each of these sources is important to be studied because Indonesia experienced a decline in total factor productivity (TFP) growth in 1990-2015 which indicates a productivity issue. The results of previous studies by Margono Sharma (2006) and Ikhsan (2007) regarding the decomposition of productivity growth in the manufacturing industry sector in Indonesia using a stochastic frontier approach, there are still disagreement about the contribution of technical changes and technical efficiency changes to TFP growth. This is thought to be caused by differences in the specifications of the technical efficiency models used, namely Battese Coelli (1992) and Lee Schmidt (1993). The two models have different estimation methods, Battese Coelli (1992) use maximum likelihood estimate, while Lee Schmidt (1993) use non-linear least squares. Hence the scalar parameters that determine the pattern of technical efficiency over time (η in Battese Coelli (1992) and θ in Lee Schmidt (1993)) are different.This study uses data for the period of 2003-2014 in the manufacturing industry sector. The results of this study indicate that different technical efficiency model specifications produce a different relative contribution of TFP growth sources. Therefore, choosing a technical efficiency model to decompose TFP growth should be thorough if the results will be used in important policy making.

Firm Size Moderate Relationship Between Capital Structure and Profitability with Dividend Policy: An Empirical Evidence from Indonesian Data

This study aims to determine effect of capital structure and profitability on dividend policy by including firm size as a moderating variable. The samples in this study were 26 companies from 65 Basic Industrial and Chemical Manufacturing Sector Companies listed on the Indonesia Stock Exchange in 2011-2019, which were determined by purposive technique. The results showed that firm size is a variable that determines the strengthening and weakening of the relationship of capital structure with dividend policy also between profitability with dividend policy. Increasing firm size or increasing company assets do not provide incentives to increase the level of company profitability as measured by return on equity. Likewise, an increase in company assets does not provide incentives to increase dividend ratios, as an estimate of an increase in company income due to increased production capacity and company sales capacity. The larger firm size provides an incentive to increase the debt ratio because of the increasing need for funding to increase its investment in long-term assets. An increase in company size is also an indication for an increase in dividend ratios due to the estimated increase in company profits due to increased company revenue. Therefore, the determinants of capital structure and dividend policy in emerging markets such as the Indonesian market share the same set of suggested factors with the developed markets.

Internationalization, Capital Structure, and Ownership Structure: A Case of Companies in Indonesia

This study aims to examine the influence of concentrated ownership, managerial ownership, and institutional ownership in moderating the influence of internationalization on capital structure. Test the hypothesis using the fixed effect model multiple regression method with the Driscoll-Kraay estimator as a robust standard error. The samples used were manufacturing industry sector companies listed on the Indonesia Stock Exchange in the 2017-2021 period, so 81 companies were obtained that had passed the purposive sampling criteria in this study. The results showed that internationalization significantly positively affects capital structure. In the moderating variable, concentrated ownership and institutional ownership weakened the positive influence of internationalization on the capital structure. Meanwhile, managerial ownership does not significantly weaken the positive influence of internationalization on capital structure.

A study of management decisions to adopt emission reduction measures in heavy industry in an emerging economy

Heavy industry can face challenges in choosing applicable climate change mitigation measures due to a lack of technical background and practical guidance. A better understanding of these determinants is needed to design region-specific climate policies that most effectively enable more ‘successful’ low carbon transitions. Set in an emerging economy, this study aims to understand the determinants which underlie investment decision-making in greenhouse gas reduction. It relies on empirical research using an exploratory case study method in the leading cement company in Indonesia. The results show four key determinants influencing (constraining) adoption were (1) the primacy of profit-seeking objectives in operational planning and development; (2) the availability of sources (clinker substitutes and alternative energy fuels); (3) the limited access to cash capital; and (4) the complexity in implementing emissions reduction projects. The inquiry also compares determinants in an emerging and developed country to provide a comparative perspective on emissions management in manufacturing. It appears that firms from the industrial sector in emerging economies have investment strategies that are largely characterised by activities that accentuate achieving financial benefits or best value for money or cost savings in a short time frame, or ‘short-termism’. Currently, greenhouse gas emissions management activities tend to be second-preference strategies for firms in emerging economies, at least in the industrial manufacturing sector.

Review on Thermal Energy Audit of Pyro-Processing Unit of a Cement Plant

Energy consumption in cement factories is an important issue for the government as well as private organizations. The cement manufacturing industrial sector has become the worldwide energy consumer accounting for over 40% of overall energy consumption by the industrial sub-sector. Most of the thermal energy consumption by a cement manufacturing plant occurs in the Pyro-processing unit. Thus, the energy audit of the cement plant is an essential exercise to promote energy retrofitting measures. The aim of the energy audit is to reduce energy consumption in the plant, reduce energy costs and identify possible Energy Conservation and Management Opportunities (ECMOs). The aim of this study was to review the techniques of energy auditing which include Mass (Material) balance and Energy balance by considering energy conservation in the form of thermal energy that helps to fill the gap in energy efficiency improvement, policy development, and environmental analysis. Using the operational data of Kiln system of Messobo Cement obtained from the literature, the heat losses were quantified for major energy consuming components of the system using both the mass and thermal energy balance approach. The production line's capacity for clinker was 145.4 tons per hour, and both burners received a combined 25 tons of coal per hour. Energy balance tests were conducted in all areas of the pyro processing systems, and the findings revealed significant energy losses from the surface of the kiln systems, kiln exhaust, and cooler exhaust.

Do Profitability and Capital Structure Influence Firm Value ? The Moderating Role of Dividend

This research aims to examine the effect of profitability and debt on firm value with dividend policy as a moderating variable. The companies that became the research sample were companies engaged in the manufacturing industry sector for five periods, from 2016 to 2020. This research uses a quantitative approach. The sample selection technique used in this study was the purposive sampling technique. Test the hypothesis using multiple linear regression and moderated regression analysis (MRA) using eviews 12. The results showed that profitability significantly positively affects the firm's value. Meanwhile, the capital structure cannot affect the value of the firm. Dividends are not able to moderate the effect of profitability on firm value. Dividends are also incapable of moderating the influence of the capital structure on firm value. Based on the study results, it can be concluded that profitability is a variable that needs to be considered for investors, companies and stakeholders interested in firm value.

A Study of the Effects of China’s TBT Notifications on Korean Exports

Since China joined the World Trade Organization (WTO) in 2002, the number of technical barriers to trade (TBT) notifications has increased rapidly. This study investigates the impact of China’s imposition of TBTs on the exports of Korean manufacturing-industry from 2002 to 2014. We focus on the following aspects: exports in terms of value-added, a comparison of exports of final goods with exports of intermediate goods, and specific trade concerns (STCs). Our findings are as follows. First, China’s TBTs have an insignificant impact on Korean manufacturing exports to China when we investigate the whole manufacturing industry sector. Second, as a result of analyzing final goods and intermediate goods separately, we do not find a significant effect of TBTs on the export of intermediate goods, whereas they have negative effects on the export of final goods. This is in line with our expectations that China does not want to restrict the import of intermediate goods. Third, further analysis of the relationship between exports and TBT STCs is conducted. However, we find no additional negative effect of TBT STCs on exports. Fourth, the impact of TBTs on exports in value-added terms does not seem to differ from the impact on total gross exports.

Determining Factors of Energy Intensity in the Manufacturing Industry of Provinces in Indonesia

Energy is vital to Indonesia's economic activities in various sectors. Energy plays an important role in the sustainability of the economic structure, which includes is the manufacturing industry. However, limited natural resources are one of the challenges for policymakers. Although energy conservation policies have been implemented in Indonesia since 1982, their enforcement in the manufacturing industry sector has not been solutive in supporting the development of the manufacturing industry in all regions. This study aims to determine the relationship between the development of energy intensity and economic growth in 26 provinces of Indonesia, using the growth and share analysis method from the data the authors have obtained. The results showed that the paper and printed goods, cement, and non-metallic minerals industries are the sub-sectors with high energy consumption. Then, Riau, DKI Jakarta, and West Java provinces are in the dominant quadrant for economic growth, but their energy intensity is in the low/slow quadrant. This indicates that industries in these three provinces have efficient use of energy.