ANALYSIS OF THE EFFECT OF ASSETS, EQUITY, AND LIABILITIES ON THE EARNINGS PERFORMANCE OF INDUSTRIAL COMPANIES ON THE INDONESIA STOCK EXCHANGE POST COVID-19: A PANEL DATA APPROACH 2021-2024
Keywords:
Profit, Assets, Liabilities, Equity, and Panel Data RegressionAbstract
This study aims to analyze the effect of assets, equity, and liabilities on the profit performance of industrial companies listed on the Indonesia Stock Exchange (IDX) in the post-COVID-19 pandemic period, namely 2021 to 2024. The sample consists of 43 industrial companies with panel data analyzed using a panel data regression approach, including the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). The estimation results show that the Fixed Effect Model is the best model based on the highest R-squared value (99.23%) and Durbin-Watson statistics close to 2 (2.43). In the FEM model, the asset variable has a positive and significant effect on profit, while equity and liabilities show a significant negative effect. This finding indicates that an increase in assets can boost the profitability of post-pandemic industrial firms, while an inefficient financing structure through equity or debt can suppress profit performance. This study provides important implications for company management and investors in assessing the composition of the financial structure to optimize profit performance in times of economic recovery.
Downloads
References
Ardi, S., & Murwaningsari, E. (2018). Financial performance determination, earnings quality, intellectual capital and company value. South East Asia Journal of Contemporary Business, Economics and Law, 15(5), 1-16. https://seajbel.com/wp-content/uploads/2018/04/SEAJBEL15_202.pdf
Basuki, A. T., & Prawoto, N. (2021). Panel Data Analysis in Economic and Business Research. PT Rajagrafindo Persada, 160. https://ekonometrikblog.wordpress.com/wp-content/uploads/2021/08/draft-buku-analisis-data-panel-dalam-penelitian-ekonomi-dan-bisnis-2021-dikompresi.pdf
Bell, A., & Jones, K. (2015). Explaining fixed effects: Random effects modeling of time-series cross-sectional and panel data. Political Science Research and Methods, 3(1), 133-153. https://doi.org/10.1017/psrm.2014.7
Choi, I., & Jung, S. (2021). Cross-sectional quasi-maximum likelihood and bias-corrected pooled least squares estimators for short dynamic panels. Empirical Economics, 60(1), 177-203. https://link.springer.com/article/10.1007/s00181-020-02007-x
Diana, H. I., & Maria, M. M. (2020). The importance of profitability indicators in assessing the financial performance of economic entities. The Annals of the University of Oradea, 29(2020), 219. https://www.researchgate.net/profile/Maria-Heder/publication/345902413_Knowledge_transfer_as_a_condition_of_employee_dedication/links/5fb1547d92851cf24cd30133/Knowledge-transfer-as-a-condition-of-employee-dedication.pdf#page=213
Faller, C. M., & zu Knyphausen-Aufseß, D. (2018). Does equity ownership matter for corporate social responsibility? A literature review of theories and recent empirical findings. Journal of Business Ethics, 150, 15-40. https://link.springer.com/article/10.1007/s10551-016-3122-x
Gujarati, D. N. (2021). Essentials of econometrics. Sage Publications.
McNeish, D., & Kelley, K. (2019). Fixed effects models versus mixed effects models for clustered data: Reviewing the approaches, disentangling the differences, and making recommendations. Psychological Methods, 24(1), 20. https://psycnet.apa.org/fulltext/2018-25738-001.html
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial behavior, agency costs and ownership structure, 3(4), 305-360. https://link.springer.com/chapter/10.1007/978-94-009-9257-3_8
Mostafa, H. T., & Boregowda, S. (2014). A brief review of capital structure theories. Research Journal of Recent Sciences, ISSN, 2277, 2502. https://www.isca.me/rjrs/archive/v3/i10/19.ISCA-RJRS-2013-772.pdf
Mushtaq, S., Younsi, M., & Sagheer, Z. (2024). Non-linearity Between Finance and Income Inequality: A Panel Data Analysis for EAGLE Countries. Journal of the Knowledge Economy, 1-28. https://link.springer.com/article/10.1007/s13132-024-02302-3
Nguyen, T. T. H., Ibrahim, S., & Giannopoulos, G. (2023). Detecting earnings management: a comparison of accrual and real earnings manipulation models. Journal of Applied Accounting Research, 24(2), 344-379. https://doi.org/10.1108/JAAR-08-2021-0217
Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies' performance. International Journal of Financial, Accounting, and Management, 4(1), 49-66. https://doi.org/10.35912/ijfam.v4i1.852
Podolianchuk, O., Plakhtii, T., & Gudzenko, N. (2019). Current liabilities and their accounting in the attracted capital management system. Baltic Journal of Economic Studies, 5(3), 159-169. https://cyberleninka.ru/article/n/current-liabilities-and-their-accounting-in-the-attracted-capital-management-system
Downloads
Published
Conference Proceedings Volume
Section
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
