FACTORS AFFECTING FINANCIAL PERFORMANCE COMPANY: STUDY FOR BISNIS27 LISTED COMPANY AT INDONESIA STOCK EXCHANGE
DOI:
https://doi.org/10.21512/jafa.v11i1.11590Keywords:
Company Size, Industry Sensitivity, Liquidity, Government Ownership, Company Age, Financial PerformanceAbstract
The research objective is to measure whether company size, industry sensitivity, government ownership, liquidity and company age affect the financial performance of company that listed in Index BISNIS-27 between year 2021-2023. Data that use is secondary data and purposive sampling method. Data collected from list of company Index BISNIS-27 that listed on Indonesia Stock Exchange and consistently listed between 2021-2023. Index BISNIS-27 is an index that evaluated by the price performance from 27 shares that determined by the Indonesian Business Index Committee (idx.co.id). The data collected were processed using SmartPLS 4. From the analysis results liquidity (current ratio) has p values 0.044 (less than 0.05) and company size has p values 0.025 (less than 0.05). Meanwhile, the industry sensitivity has p values 0.158 (more than 0.05), government ownership has p values 0.392 (more than 0.05), and company age has p values 0.145 (more than 0.05). The research concludes that liquidity (current ratio), and company size positively and significantly affect on a company financial performance. Meanwhile, the industry sensitivity, government ownership, and company age positively and insignificantly affect on a company financial performance.
Plum Analytics
References
Adriansyah, M. K., Purnomo, B. Y., Lestari, H. S., & Margaretha, F. (2023). The Effect of Corporate Social Responsibility, Company Size and Company Age on the Financial Performance of Manufacturing Companies listed on the Indonesia Stock Exchange (IDX). Journal of Economics, Management and Trade, 52–64. https://doi.org/10.9734/jemt/2023/v29i31083
Airout, R. M., Alawaqleh, Q. A., Almasria, N. A., Alduais, F., & Alawaqleh, S. Q. (2023). The Moderating Role of Liquidity in the Relationship between the Expenditures and Financial Performance of SMEs: Evidence from Jordan. Economies, 11(4). https://doi.org/10.3390/economies11040121
AlAli, M. S., & Saeed, T. (2020). Government Ownership Effect on Staffing Level and Financial Performance. International Journal of Finance & Banking Studies (2147-4486), 9(3), 99–104. https://doi.org/10.20525/ijfbs.v9i3.836
Aprilliani, M. T., & Totok, D. (2018). Pengaruh tata kelola perusahaan dan ukuran perusahaan terhadap kinerja keuangan perusahaan artikel ilmiah. Diponegoro Journal of Accounting, 7(1), 1–10.
Dang, C., & Li, Z. F. (2013). Measuring Firm Size in Empirical Corporate Finance. SSRN Electronic Journal, January 2013. https://doi.org/10.2139/ssrn.2345506
Darman, D., & Andini Hilumalo, A. N. (2023). Capital Structure and Company Size Impact on Financial Performance: A Literature Review. West Science Interdisciplinary Studies, 1(11), 1192–1197. https://doi.org/10.58812/wsis.v1i11.383
Durrah, O., Rahman, A. A. A., Jamil, S. A., & Ghafeer, N. A. (2016). Exploring the relationship between liquidity ratios and indicators of financial performance: An analytical study on food industrial companies listed in Amman Bursa. International Journal of Economics and Financial Issues, 6(2), 435–441.
Dyana Novita Taristy, Ulil Hartono, & Nadia Asandimitra Haryono. (2022). Manufacturing Companies :The Effect of Liquidity and Corporate Governance on Financial Performance with Firm Size as a Moderating. Journal of Business and Management Review, 3(7), 486–501. https://doi.org/10.47153/jbmr37.4232022
Garcia, A. S., Mendes-Da-Silva, W., & Orsato, R. (2017). Sensitive industries produce better ESG performance: Evidence from emerging markets. Journal of Cleaner Production, 150, 135–147. https://doi.org/10.1016/j.jclepro.2017.02.180
Hair, J. F., Hult, G. T., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) - Joseph F. Hair, Jr., G. Tomas M. Hult, Christian Ringle, Marko Sarstedt. In Sage.
Liu, K. (2018). The relation between government ownership and firm performance: Evidence from cross-country datasets. International Journal of Business, 23(2), 183–197.
Muslih, M., & Marbun, S. O. (2020). The Effect of Risk Management, Firm Age, and Firm Size on the Performance of Banking Companies Registered in Indonesia Stock Exchange Moderated By Corporate Governance and Budget as Control Variable. International Journal of Science and Society, 2(4), 274–290. https://doi.org/10.54783/ijsoc.v2i4.211
Nguyen, T. H., Vu, Q. T., Nguyen, D. M., & Le, H. L. (2021). Factors influencing corporate social responsibility disclosure and its impact on financial performance: the case of Vietnam. Sustainability (Switzerland), 13(15). https://doi.org/10.3390/su13158197
Omondi, M. M., Muturi, W., & Kenyatta, J. (2013). Factors Affecting the Financial Performance of Listed Companies at the Nairobi Securities Exchange in Kenya. In Research Journal of Finance and Accounting www.iiste.org ISSN (Vol. 4, Issue 15). Online. www.iiste.org
Ringle, C. M., & Sarstedt, M. (2016). Gain more insight from your PLS-SEM results the importance-performance map analysis. Industrial Management and Data Systems, 116(9), 1865–1886. https://doi.org/10.1108/IMDS-10-2015-0449
Thi Thuy, D. (2023). Literature review on Factors Affecting Financial Performance of firms. International Journal of Business and Management Invention (IJBMI) ISSN, 12, 181–188. https://doi.org/10.35629/8028-1206181188
Yudhanto, W., & Simamora, A. J. (2023). Environmental, Social, and Governance Risk on Firm Performance: The Mediating Role of Firm Risk. Binus Business Review, 14(2), 223–234. https://doi.org/10.21512/bbr.v14i2.8935
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
