Many companies invest heavily in building competitive advantage to improve their financial performance and corporate value. This study aims to examine and explain the effect of competitive advantage on financial performance and firm value of manufacturing firms in Indonesia. The study was conducted on 30 manufacturing firms in Indonesia by analyzing the data on the company's financial statements of the period from 2010 to 2016. Data were analyzed using Generalized Structured Component Analysis (GSCA). The results conclude that competitive advantage has a positive and significant effect on financial performance and firm value. Financial performance also shows a significant and positive effect to firm value. This study provides empirical evidence of the effect of competitive advantage on firm value which is rarely studied before. This study also strengthens the evidence of the effect of competitive advantage on financial performance and the effect of financial performance on firm value.
KEY WORDSCompetitive advantage, accounting ratios, signaling theory, generalized structured component analysis, firm value.
The purpose of this review is to find out the amounts of profit, company size, and dividend policy which can influence the company's value. LQ45 which is listed in Indonesian Stock Exchange is in the year of 2015 -2018. This research is using Explanatory Research with quantitative approach. The sampling technique is using purposive sampling. Profitability is a financial method used to gauge company's profit. Company's profit that comes from sales and investment return, can influence the company's size. The company's scale is an important information, used by investor who wants to invest their wealth to the company. The magnitude of company can influence dividend return. Company's profit can affect the size of company and dividend return. It can be reflected in the increasing of company' value. The performance of company can be a parameter used by investor to do an investment or funding to the company.
The primary objective of this study is to analyze the effect of earnings quality on financial performance of banks in Indonesia. The study also aims to compare in which type of banks the independent variable has more influence on the dependent variable, whether state-owned or private banking. Indicators for earnings quality are discretionary accruals and earnings persistence while measurements for financial performance are return on assets, return on equity, rate return on loans and total asset turn over. Eight conventional banks compared in this study are four government banks and four private banks. The authors apply Partial Least Square Multigroup Technique upon, research data from 2006 -2018 period. The results indicate that earnings quality has a positive significant influence on financial performance of the banks. Apparently, the effect of earnings quality on financial performance of private banks is greater than that of state-owned banks, showing that the types of bank moderates the influence of earnings quality on the financial performance. This study recommends the importance of improving earnings quality of state-owned banks. Furthermore, this study suggest that goverment companies should avoid earnings management in order to create good and high quality financial performance, especially in the banking sector in Indonesia.
This article aims to examine the effect of environmental cost to financial performances, measured by profitability and firm value in Japanese chemical industry during 2012-2015. Examining about this matter in Japan case is suitable since the government has settled guidelines that assist the companies to record and report their activities in environmental preservation. This study focuses on chemical industry in Japan because the industry has been potential to create hazardous wastes along with its daily businesses. In Japan, the companies are involved in Japan Chemical Industry Association (JCIA) that initiates international environmental programs called Responsible Care.
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