This study aimed to analyze the effect of debt literate, financial literacy, and financial wellbeing on SMEs performance directly and through financial experience. This research was conducted by visiting SMEs managers in Central Java, Indonesia. The total sample was 475 respondents who had answered the questionnaire completely. The data was analyzed using the model structure to determine the direct and indirect effects. The results show that the financial literacy variable has a direct and indirect effect through financial experience on the SMEs performance. The debt literate variable does not have a direct effect on it, but it has an indirect effect through financial experience. In addition, financial well-being has no effect on the SMEs performance either directly or through moderation of financial experience. These empirical findings provide evidence that SMEs performance can be improved through financial literacy, debt literate, and financial experience. There needs to be an increase in financial literacy and financial experience for SMEs owners in order to be able to understand every financial phenomenon that can hamper SMEs performance improvement. Further research is required to investigate the predictability of debt and financial literacy in enhancing SME performance using a different sample from several settings.
Macroeconomic policy (fiscal and monetary) dynamics are interesting to analyze, especially considering corporate performance. This paper aims to determine the effect of macroeconomic policy on the company’s profit rate. Effectiveness of tax revenue (ETAX), realization of tax revenue (RTAX), Bank of Indonesian rate (BIRT), investment growth (INVG), realization of investments (RINV), infrastructure fund allocation rate (INFR), and realization of infrastructure funds (RINF) are macroeconomic policy variables. This study uses a sample of 256 companies listed on the Indonesia Stock Exchange (IDX) in 2005–2019. This paper employs such methods as GMM, using Wald-test and Sargan’s test. GMM estimator result shows that the instrument of infrastructure fund realization policy (RINF), investment growth (INVG), and investment realization (RINV) affect the company’s profit rate (PROF). Therefore, companies need to pay attention to the government development plans, investment growth, and investment realization, which can improve company performance. The result, government’s development for the 2005–2009 and 2015–2019 periods shows a significant difference in companies’ ability to generate profits. AcknowledgmentsWe would like to thank the Department of Management, Faculty of Economics and Business, Universitas Islam Nahdlatul Ulama Jepara (Unisnu), and the Institute of Research and Community Services (LPPM) Unisnu Jepara Indonesia, which has supported this study.
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