Financial performance is important to see the level of achievement of predetermined targets, as material for evaluation, and policies that must be taken by management. The influence of liquidity and good corporate governance through the mechanism of ownership structure towards the financial performance of Manufacture Company listed on the IDX in 2020-2021 with firm size as moderating variable are the aim of this research. This type of research is quantitative research with secondary data. The purposive sampling method was used for research sampling and obtained 87 companies. Moderate regression analysis (MRA) is used to be analysis technique in this research. This research get results that liquidity has a significant positive effect on financial performance, but institutional and managerial ownership have not effect on financial performance because companies whose ownership structure is dominated by institutional investors actually get a poor response from the market and the company's managerial shareholding has not been able to align the interests of shareholders outside of management, and then firm size can’t moderate the relationship of liquidity, institutional and managerial ownership to financial performance because the size of the company is not so much noticed by interested parties in the company.
Financial performance is an assessment of the company from achieving predetermined targets. The aim of this research is the influence of leverage, firm size, capital structure, intellectual capital, and environmental cost towards the financial performance of Mining Sector Company listed on the Indonesian Stock Exchange (IDX) in 2014-2019. This research is included in the type of explanation research with quantitative research. Return On Assets (ROA) is used in this case to measure the company’s financial performance. In this research, the population consisted of 50 companies, and the obtained samples from the purposive sampling consisted of 10 companies. Multiple linear regression is used to be the analysis technique in this research. This research gets results that leverage, firm size, capital structure, and intellectual capital have not to effect on a company’s financial performance. The environmental cost has a significant negative effect on the company’s financial performance. The company must maintain the form of its responsibility to the environment by paying attention to the proportion of the budget that must be spent not to impact the acquisition of its financial performance. Next researcher can add or replace the variables that have been researched, replace or extend the period of the research year, increase the sample of companies, or use other sectors listed on the IDX as samples to get different results.
Financial performance is an important aspect to consider as it reflects the company's condition and the effectiveness of fund utilization towards the set targets, serving as an evaluation tool and facilitating the company in analyzing and considering factors that can influence any changes, especially in facing the massive economic changes caused by the Covid-19 pandemic. This study aims to analyze the influence of liquidity, corporate governance with institutional ownership mechanism, managerial ownership and audit committee, as well as business risk on financial performance, moderated by company size and capital structure in manufacturing sector companies listed on the Indonesia Stock Exchange (BEI) during the 2020-2021 period. The sample was determined using purposive sampling method, and a total of 168 samples were obtained during the research period. The data analysis methods used were multiple linear regression and Moderate Regression Analysis (MRA). The results indicate that liquidity has a positive influence on financial performance, institutional ownership and managerial ownership do not have a significant influence on financial performance, the audit committee has a negative influence on financial performance, business risk has a positive influence on financial performance, and company size and capital structure cannot directly moderate the occurring influences
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.