Analysis of Corporate Financial Performance in Indonesia’s Transportation and Logistic Sector
Shelomita Candra Herdiana
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Purwokerto, Indonesia.
Ika Yustina Rahmawati *
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Purwokerto, Indonesia.
Naelati Tubastuvi
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Purwokerto, Indonesia.
Restu Frida Utami
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Purwokerto, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: To examine the effect of the board of directors, board of commissioners, independent board of commissioners, capital structure, liquidity, and sales growth on the company's profitability.
Study Design: Dependent variable: profitability, independent variables: board of directors, board of commissioners, independent board of commissioners, capital structure, liquidity, and sales growth.
Place and Duration of Study: The research was conducted on transportation and logistics sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022.
Methodology: The method used in data collection is study uses purposive sampling that produce 56 company data from 148 data by caltulating them using several tests: descriptive statistical, chow, hausman, lagrange multiplier, and regression using the Eviews 12 analysis tool.
Results: The analysis test showed the results chow test with values of 0.009<0.05(FEM), the results of hausman test of 0.627>0.05(REM), and the LM test of 0.149>0.05(CEM) and the results of regression test in the hypothesis test on the variables of the board of directors resulted in a probability value of 0.000<0.05(accepted) can affect the proditability, on the variables of the board of commissioners(0.710), independent board of commissioners(0.119), Capital Structure(0.200), liquidity(0.196), sales growth(0.218) and showing probability value>0.05(not accepted) do not affect the company's profitability.
Conclusion: The result showed that transportation and logistic sector at company’s profit level can be affected by the mangement of directors which affects the increase in profitability. However, with the increase in the number of commissioners, independent commissioners, the many burdens and obligations borne, the company cannot achieve maximum profits. The increase in sales growth doesn’t affect the company's profits because of the enormous debt and operating costs that must be paid to meet its operational needs. Thus the company can provide signals or information according to signaling theory to investors to compare and make investment decisions in the company.
Keywords: Profitability, directors, commissioner, capital structure, liquidity, sales growth