Articles

The Effect of Profitability, Capital Structure and Cash Dividend on Firm Value of Public Non-Financial Companies in Indonesia During the Period Before and During the Covid-19 Pandemic (2018-2021)

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This study aims to test and prove empirically the effect of the independent variables namely profitability, capital structure and cash dividends on the dependent variable, namely firm value with liquidity and firm size as control variables. The research method used is quantitative research in the form of a correlational study using firm financial report panel data taken at www.idx.co.id. The sampling technique in this study was purposive sampling with a total sample of 116 non-financial companies listed on the Indonesia Stock Exchange for the 2018-2021 period. The data analysis method used is multiple linear regression using the eviews application. The results of the study found that profitability, cash dividends, liquidity and firm size had no effect on firm value in the period before and during the Covid-19 pandemic. Capital structure has an effect on firm value in the period before and during the Covid-19 pandemic. Adjusted R2 value shows that 64.7% of firm value can be explained by profitability, capital structure, cash dividends, liquidity and firm size, the remaining 35.3% is influenced by other variables not examined in this study.

Valuation of GoTo Post-Merger: Analysis of the Key Drivers

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The pandemic has led to significant growth in Indonesia’s digital economy, with e-commerce and on-demand services driving growth. However, many startups go public before achieving profitability, raising concerns about their long-term financial sustainability. PT GoTo Gojek Tokopedia Tbk., an Indonesian startup, went public in April 2022 but experienced a 75% decline in share price by December. This research aims to identify potential strategies to improve GoTo’s profitability, determine implementation methods, assess intrinsic value, and analyze associated risks. The research design process includes a literature review, data collection, and financial projections using the Discounted Cash Flow method. Horizontal integration through mergers and acquisitions holds the greatest potential to enhance GoTo’s profitability. Implementing this strategy requires sustainable revenue growth, strategic investments, and rigorous cost management practices. GoTo must prioritize sustainable revenue growth, strategic investments, and cost reduction strategies to achieve its strategic objectives.

Do Firms Change the Working Capital Management Policy During The Covid-19 Pandemic? Case of Transportation & Logistics and Healthcare Industries in Indonesia

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This study explores the crucial role of working capital management in balancing profitability and risk for companies. Economic conditions and sector-specific fluctuations in GDP influence working capital decisions. The transportation and logistics industry faced challenges with reduced demand, while the healthcare industry dealt with increased demand and longer payment collection periods during the pandemic. Using panel data regression on healthcare and transportation companies listed on the Indonesia Stock Exchange from 2017 to 2021, the study examines the impact of working capital management on profitability. Findings show significant correlations between working capital components and company profitability in both sectors. Specifically, before the pandemic, Days Sales Outstanding (DSO) positively affected Return on Assets (ROA), while Working Capital Financing Policy (WCFP) had a negative impact. During the pandemic, DSO and Working Capital Investment Policy (WCIP) positively influenced ROA in the transportation sector, while WCFP negatively affected it. In the healthcare sector during the pandemic, both DSO and Days Inventory Outstanding (DIO) positively affected ROA. For Net Profit Margin (NPM), the significance of working capital variables changed during the pandemic in the transportation sector, with DSO negatively impacting NPM, while WCIP and WCFP had a positive effect. In the healthcare sector during the pandemic, WCIP positively correlated with NPM, while WCFP had a negative correlation. Effective working capital management is essential for companies to navigate economic fluctuations and ensure uninterrupted operations.

Investment Opportunity Set (IOS) In Mediating Company Advantage to Funding Policies in Lq45-Indexed Companies

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This quantitative study aims to determine and analyze the effect of investment opportunity set (IOS) in mediating company advantage in the form of company size and profitability on funding policies in LQ45-indexed companies in 2019-2020. The population of this study is 54 companies. It involved 24 Samples selected using a purposive sampling technique. Data were collected from the documentation and data presentation using time series data. Data were analyzed using regression analysis, path analysis, and the Sobel test. The results showed that there is no effect of company size on funding policy and profitability has a negative effect on funding policy. Besides, IOS has a positive effect on funding policy and company size does not affect IOS. Profitability has a positive effect on IOS. IOS cannot mediate company size against funding policies. IOS can partially mediate profitability against funding policies. Companies use the opportunity to grow with the amount of debt to get more value with their investment. Companies positively respond to the extent of investment opportunities by turning their capital from internal and external companies for investment purposes.

Assessing Sharia Banking Commitment through the Shariah Maqashid Index

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In addition to earning profits, Islamic banks also carry out a missions in the field of Islamic finance, therefore profitability is not the only measure of good or bad performance. This research reviews the performance of Islamic banking in other non-financial aspects, namely by using the maqashid sharia index. The methodology used in this research is descriptive quantitative, using the sample is the financial statements of Islamic banking; BCA Syariah, BNI Syariah, BRI Syariah, Mandiri Syariah, Muammalat, and Panin Syariah during the 2018 – 2020 period. The results of the research in this article show that the performance of Islamic banking in the sample has not fulfilled the sharia function/sharia objective of the presence of the sharia bank itself, p. This shows that Islamic banks do not yet have a strong commitment to upholding sharia in muammalah (business).

Startup Company Strategy to be Sustainable through Financial Services Product: Mitra Bukalapak Study Case

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Mitra Bukalapak is a B2B platform that digitalises 13.1 million Warung or Kiosks to be able to sell physical, virtual, and financial products. Today, this company is still having a negative contribution margin. Research has been conducted and shows that non-T1 cities are having the highest Mitra Bukalapak agent growth. This due to the unbanked people are demanding to get a certain service. A questionnaire has been sent to Mitra Bukalapak’s agent and an in-depth interview with internal stakeholders has been done to collect the data. The analysis of the data is conducted through qualitative and quantitative analysis and found 3 potential business strategies for the company. VRIO framework is used to identify Mitra Bukalapak’s competitive advantage internally. External analysis is done through STP marketing strategy and 7P marketing mix analysis. As the result, developing a new product portfolio can be one option. Tapping into a new market and concentrating on the high-growth market in T2 and T3 cities can be another. Also boosting revenue from existing customers by giving a higher charged fee can increase the take rate. This study aims to propose a strategy for Mitra Bukalapak to get a positive contribution margin specifically through its financial services product.

Impact of Working Capital Management on Profitability and Market value of the Logistics Industry

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A company needs sufficient non-current assets and current assets for the successful running of the business and maximization of the wealth of the firm. Especially, in the short-run current assets or working capital management plays an important role in the success or failure of the firm and its impact on its profitability of the firm. This article aims to examine the impact of working capital management on the performance and as well as the market value of companies in the logistics industry. This study used the fixed effect panel data analysis with a data set covering six logistics companies listed on the Bombay Stock Exchange, India for the period 2013-2022.

To estimate the relationship between working capital management and the performance of companies used Return on Assets (ROA), Return on Equity (ROE), and Market value to Book value (MVBV) as dependent variables in the research models. The main results indicate that the positive relationship between working capital, market value, and profitability is not very clear. Logistics companies’ sales are negatively associated with MVBV and ROE of logistics companies. The cash conversion cycle is found statistically not significant, and the relationship between CCC and profitability is negative. Overall, of the study, it is concluded that working capital has an impact on the profitability of logistics companies in India.

Strategic Investment Analysis for the Gas Station Projects Using Build Operate and Transfer (Case Study: PT Pertamina, Besakih Bali)

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One of deployment planning from Pertamina is Besakih area in Bali. In this simple requirement, Pertamina need a further study to plan which type of gas stations will be implemented, COCO (Company Own Compant Operate) or DODO (Dealer Own Dealer Operate). COCO was found to be the viable option because DODO facing a major challenge based on the PESTLE and SWOT which is an issue related to government attitude towards greener technology such as electric vehicle.  A several options for funding have been identified and well documented with several restrictions which are equity, loan, venture capital, and build operate transfer. If Pertamina need a new gas stations in terms of only 20% coming from capital (80% loan). Pertamina is not entitled to fund by venture capital as Pertamina is a state own company with rigid regulation. For the deployment of new gas station, the most expensive part is the land, therefore searching the solution through land funding is the most viable option. It was found that the strategy build, operate, and transfer (BOT) is a very interesting option. For the Pertamina, it erases the necessity for buying the land, on the other hand, for the land owner, it is better that their land could be useful for them in the next 15 years before they are getting all the facility transferred. The payback period is only 3,36 years with the IRR of 27,03% which is higher than the WACC. In case of Pertamina taking 80% loan and 20% equity, the NPV will return in the 5th year in start of the investment or 4th year in start of the operation. This strategy opens up new opportunities and solution for the business because it writes out land CAPEX necessity.

The Role of Profitability in Moderating the Influence of Liquidity and Leverage on Audit Opinion

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The auditor issued an audit opinion to determine the risk of uncertainty regarding the condition of the company to continue operating where COVID-19 is spreading rapidly. This research aims to look at the influence of liquidity and leverage on audit opinion in the consumer goods sector listed on the Indonesia Stock Exchange in 2020, with profitability as a moderation variable. The research model uses a causal-comparative design and binary logistic regression analysis with secondary data types. 188 consumer goods sector companies listed on the Indonesia Stock Exchange, in 2020, met the criteria for being the research sample. The results of the study showed that liquidity and leverage simultaneously affect audit opinion. Partially, liquidity has no influence on audit opinion, while leverage partially affects audit opinion. Profitability as moderation is able to strengthen the influence of liquidity on opinions but is not able to moderate the influence of leverage on audit opinions. The limitation in this study is that it only selects the company’s internal factors. Further researchers are expected to consider other free variables such as auditor turnover, and opinions submitted by auditors in the previous period, as well as using other sectors such as the real estate property sector. The leverage factor can be used as reference data for auditors to see how the company is able to maintain the condition of the company to avoid bankruptcy in the pandemic.

Impact of Category Captains on Category Sales and Profitability

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The Indian retail industry is a growing segment and there are several players in entire India. Some of the big names are Reliance Retail, Future Retail, Spar, Spencer’s, Ratandeep, and many more. They are present in different states of India and catering a huge urban population. In any retail store, category plays a vital role and its management is very important. Sales of any retail chain is dependent on better and effective management of different categories. For every category, there are some of the main brands which lead the category sales. Category captains may play important roles in driving the overall retail chain business. Category captains can formulate the strategy for different product categories and can suggest the retail chain for implementing the same. However, the final decision is taken by retail chains only.