Volume 3, Number 5, March 2022 e-ISSN: 2797-6068 and p-ISSN: 2777-0915
THE INFLUENCE
OF ROE, INTELECTUAL CAPITAL, LEVERAGE, ROA, LIQUIDITY, DIVIDEND POLICY ON
FINANCIAL PERFORMANCE IN THE FOOD AND BEVERAGE SUB SECTOR MANUFACTURING
COMPANIES ON IDX FOR THE 2018 � 2020 PERIOD
|
KEYWORDS Dividend Policy, ROE, Intellectual Capital,
Leverage, ROA, Liquidity, ARTICLE
INFO Accepted: February, 25th 2022 Revised: March, 13th 2022 Approved: March, 14th
2022 |
ABSTRACT This study aims to
examine whether ROE, intellectual capital, leverage, ROA,
liquidity, dividend policy have
an effect on financial performance. This research was conducted on food and
beverage sub-sector manufacturing companies for the period 2018�2020 with a
research population of 26 (twenty six) companies listed on the Indonesia
Stock Exchange. The sampling technique used here is a saturated sampling
technique, namely the technique of determining the sample and then obtaining
a sample of 23 (twenty three) companies. The data used are the financial
statements of each sample company published through www.Idx.co.id. The
research method used is descriptive method and multiple linear regression analysis
method. The dependent variable is dividend policy, while the independent
variable is ROE, intellectual capital, leverage, ROA, liquidity, dividend
policy. The results show that partially ROE, Intellectual Capital, Leverage,
ROA, Liquidity and Dividend Policy have a significant effect on the financial
performance of the food and beverage subsector manufacturing companies listed
on the Indonesia Stock Exchange (IDX 2018-2020). |
INTRODUCTION
Economic growth and development
accelerate as we enter the era of economic globalization. In addition, there
are an increasing number of competitors in the corporate sector. In order to
obtain the maximum profit or benefit from the company's sales, the business
sector is required to perform as effectively and efficiently as feasible. The performance
determined the achievement of these objectives, which may then be utilized as a
basis for both external and internal decision-making (Meidiyustiani,
2016). Companies must also be aware of their financial
situation, as financial conditions can have an impact on the company's overall
sustainability in the future (Kartika, 2012).
Investors can judge how well a firm is managed and how well it
performs by looking at its financial state.
The company's work in evaluating and
reviewing every success in generating profit is referred to as financial
performance (Winarno, 2019).
With solid financial performance in terms of raising and
distributing funds, the company will be able to better understand its financial
situation at any given time.
The relationship between multiple
posts in a financial report can be used to determine excellent and bad financial
performance in a corporation (Maith, 2013). �Financial
ratios can be used to assess a company's success. The calculation of ratios to
assess past, current, and potential future financial conditions is known as
financial ratio analysis.
The analysis and evaluation of
financial statements can be used to assess financial performance (Dewa &
Sitohang, 2015). �Financial
data and past performance are frequently used to forecast the company's
financial position and performance in the future, as well as matters of
immediate interest to users such as dividend payments, wages, price movements,
securities, and the company's ability to meet its commitments when they fall
due to tempo.
According to the above definition,
the goal of this research is to see if ROE, intellectual capital, leverage,
ROA, liquidity, and dividend policy have an impact on financial performance.
Table 1. Fluctuating data
The proportion of total debt at PT.
Garudafood Putra Putri Jaya Tbk increased by IDR 862,340,612,850 in 2019 and
2020, and the dividend percentage increased by IDR 156,628,248,148 in 2019 and
2020, as shown in table 1. This pattern defies conventional wisdom, which
states that as total debt rises, dividends distributed fall.
Table 1 show that the percentage of
sales raised by Rp. 598,615,199,059 in 2018 and 2019 at PT. Mayora Indah Tbk,
while the percentage of dividends declined by Rp. 137,338,235,273. This
phenomena defies conventional wisdom, which holds that when sales diminish, so
will the dividends paid out.
The percentage of PT. Prasidha Aneka
Niaga Tbk current assets declined by Rp 125,952,447,140 in 2019 and 2020. While
the percentage of dividends remained unchanged. This occurrence defies
conventional wisdom, which states that as current assets rise, dividends rise
as well.
Literature review
Theory of the Effect of ROE on Financial Performance
According to, (Kasmir, 2018,
p. 204), �The
return on equity, often known as the profitability of own capital, is a ratio
that measures the return on investment. This ratio reflects the ability to give
a return on investment based on the book value of shareholders. The higher this
ratio, the better, as it suggests that the company's owner's position is
improving.
Theory of the Effect of Intellectual Capital on Financial
Performance
According to Mavridis (2005) in Andriana's
(2014) research, �intellectual
capital is an intangible asset that includes information and knowledge owned by
businesses and must be properly maintained to provide them a competitive
advantage.
Theory of the Effect of Leverage on Financial Performance
According to Sjahrian (in Satriana, 2017) �the
use of assets and sources of funding by companies with fixed costs, such as
loans with interest as a fixed expense, to raise the potential finances of
shareholders is known as leverage.
Theory of the Effect of ROA on Financial Performance
According to Sujarweni (2017)
the ability of money invested in total assets to generate net
profits is measured by the return on assets (ROA). Return on Assets (ROA) is a
metric that measures how efficiently assets are used. This metric evaluates a
company's ability to generate profits from its current economic resources.
Theory of the Effect of Liquidity on Financial Performance
According to Kasmir (2018, p.
110), �the
liquidity ratio is a measure of a firm's capacity to satisfy short-term
obligations. The liquidity ratio's purpose is to demonstrate or quantify a
company's ability to satisfy its maturing commitments, both external and
internal.
Current Ratio
According to Kasmir (2018, p.
314) the current ratio is a ratio used to assess a
company's capacity to pay short-term obligations or debts that are due
immediately when fully billed.
Theory of the influence of dividend policy on financial performance
According to Harjito &
Martono (2014, p. 270) �the
dividend policy of a corporation determines whether profits made by the company
will be dispersed as dividends to shareholders or will be maintained in the
form of profits to finance future investment.
Activity Ratio
According to Kasmir (2018, p.
172), the activity ratio is a metric used to assess a
company's efficiency in utilizing its assets. The ratio that compares the level
of sales to asset investment for a given period indicates that a desired
balance between sales and assets such as receivables and other assets is
expected.
Total Asset Turn Over (TATO)
Kasmir (2018, p.
185) �the
total asset turnover ratio is used to calculate the amount of revenue generated
by each asset. This ratio depicts the rate at which the company's assets are
turned over during a certain period. The better the company utilises its
assets, the higher the company's performance will be.
Figure
1. Conceptual framework
��
Based on the conceptual framework
described above, the hypotheses in this study can be developed as follows:
H1: ROE has a partial effect on the
financial performance of manufacturing companies in the food and beverage
sub-sector listed on the Indonesia Stock Exchange for the period 2018-2020.
H2: Intellectual Capital has a
partial effect on the financial performance of manufacturing companies in the
food and beverage sub-sector listed on the Indonesia Stock Exchange for the
period 2018-2020.
H3: ROA has a partial effect on the
financial performance of food and beverage sub-sector manufacturing companies
listed on the Indonesia Stock Exchange for the 2018-2020 period.
H4: Liquidity has a partial effect
on the financial performance of manufacturing companies in the food and
beverage sub-sector listed on the Indonesia Stock Exchange for the 2018-2020
period.
H5: Leverage has a partial effect on
the financial performance of manufacturing companies in the food and beverage
sub-sector listed on the Indonesia Stock Exchange for the 2018-2020 period.
H6: Dividend policy has a partial
effect on the financial performance of manufacturing companies in the food and
beverage sub-sector listed on the Indonesia Stock Exchange for the 2018-2020
period.
H7: Roe, Intellectual Capital, Roa,
Liquidity, Leverage and Dividend Policy partially affect the financial
performance of manufacturing companies in the food and beverage sub-sector
listed on the Indonesia Stock Exchange for the 2018-2020 period .
METHOD RESEARCH�������������������������������
This research was conducted using a
quantitative approach. Data analysis is quantitative or statistical hypotheses
that have been set. The population that will be used in this study are all food
and beverage companies listed on the Indonesia Stock Exchange (IDX) in
2018-2020, totaling 23 companies.
The sampling technique used is the
saturated sampling technique, which is a sampling technique when members of the
population are used as the population, so for this study a sample of 23
companies with a time range of 2018-2020, so that an observation sample of 69
companies can be obtained (N = 23 companies x 3 years).
The data analysis model in this
study is multiple linear regression analysis which aims to determine the
magnitude of the effect of cash turnover, accounts receivable turnover,
inventory turnover, working capital turnover and fixed asset turnover on
liquidity. Multiple regression equation formula:
Information:
Y: Financial Performance, a:
constant, b1, b2, b3, b4, b5, b6: regression coefficient, X1: ROE variable X2:
Intellectual Capital variable, X3: ROA variable, X4: Liquidity variable, X5:
Leverage variable, X6 : Dividend Policy Variable������������������������������������������
RESULT AND DISCUSSION
Research result
Hypothesis testing was tested with
multiple linear regression analysis. The regression model used is:
Table 2. Coefficients�
|
|
Unstandardizedu Coefficients |
Standardizedu Coefficientsu |
|
|
|
|
Model |
B |
Std. Error |
Beta |
T |
Sig. |
|
1 (Constant) |
0.086 |
0.414 |
|
0.207 |
0.837 |
|
ROE |
0.02 |
0.017 |
0.215 |
1. 151 |
0.259 |
|
NETWORKING |
|
|
|
|
|
|
CAPITAL |
-7.42E-13 |
0 |
-0. 259 |
-1. 097 |
0.282 |
|
DAR |
-0. 179 |
0.63 |
-0. 043 |
-0. 284 |
0.779 |
|
ROA |
0.043 |
0.034 |
0.257 |
1. 263 |
0.216 |
|
CURRENT RATIO |
0.337 |
0.084 |
0.989 |
4. 011 |
0 |
|
DIVIDEND PER SHARE |
0 |
0 |
-0. 06 |
-0. 465 |
0.646 |
Based on table 2, the results
obtained from the T test are:
1.
The T value for the ROE variable is 1, 151, the t table value is
obtained from the degrees of freedom. The degrees of freedom nk=38-8=30, then
the t table is 2,04227. So it can be concluded that tcount <t table (1, 151<
2, 04227) which means ROE has no effect on TATO. Meanwhile, when viewed from
sig. 0, 259 > 0, 05 which means ROE is not significant to TATO.
2.
The calculated T value for the NET WORKING CAPITAL variable is -1,
097 the t table value is obtained from the degrees of freedom. The degrees of
freedom are nk=38-8=30, so the t table is 2, 04227. So it can be concluded that
t count < t table (-1, 097 < 2, 04227) which means that NET WORKING
CAPITAL has no effect on TATO. Meanwhile, if seen from sig 0, 282 > 0, 05 which
means NET WORKING CAPITAL is not significant to TATO.
3.
The calculated T value for the DAR variable is -0.284, the t table
value is obtained from the degrees of freedom. The degrees of freedom nk = 38-8
= 30, then the t table is 2, 04227. So it can be concluded that t count < tu
table (-0, 284 < 2, 04227) which means that DAR has no effect on TATO.
Meanwhile, when viewed from sig 0.779 > 0.05, which means DAR is not
significant to TATO.
4.
The calculated T value of the ROA variable is 1.263, the t table
value is obtained from the degrees of freedom. The degrees of freedom nk = 38-8
= 30, then the t table is 2, 04227. So it can be concluded that t count < t
table (1, 263 < 2, 04227) which means ROA has no effect on TATO. Meanwhile,
when viewed sig. 0, 216 > 0, 05 which means ROA is not significant to TATO.
5.
The calculated T value of the CURRENT RATIO variable is 4.011, the
t-table value is obtained from the degrees of freedom. The degrees of freedom
are nk=38-8=30, then the t table is 2, 04227. So it can be concluded that t
count > t table (4, 011 > 2, 04227) which means that CURRENT RATIO has an
effect on TATO . Meanwhile, when viewed from sig 0.00 < 0.05, which means
the CURRENT RATIO is significant to TATO.
The calculated T value of the
DEVIDEND PER SHARE variable is -0, 465, the t table value is obtained from the
degrees of freedom. The degrees of freedom nk = 69-8 = 61, then the t table is
2.04227. So it can be concluded that t count < t table (-0, 465 < 2,
04227) which means that DEVIDENTS PER SHARE has no effect on TATO. Meanwhile,
if it is seen from sig 0.646 > 0.05, it means that DIVIDEND PER SHARE is not
significant to TATO.
Hypothesis Determination Coefficient
The coefficient of determination is
used to determine the effect of the independent variable on the dependent
variable. If the value of the determinant coefficient is higher or almost
reaches number one, it can be said that the strength of the independent
variable is getting stronger against the dependent variable.
Table 3. Test the Model Determination Coefficient Summary b
|
Model |
R |
R Square |
AdjustedR Square |
Std. Error of the Estimate |
Durbin-Watson |
|
1 |
. 810a |
. 657 |
. 562 |
. 47246 |
1. 395 |
a. Predictors: (Constant), DIVIDEND PER SHARE, CURRENT RATIO, ROE,
DAR, ROA, NET WORKING ������� CAPITA
Table 3 shows the analysis of the
coefficient of determination resulting in an Adjusted R Square of (0.057)
meaning (5, 7%) from the variation of variables that can be explained by the
independent variables ROE, Net Working Capital, DAR, ROA, Current Ratio and
Devidents Per Share, while the other 94, 3% were explained by other variables
not included in the study.
Simultaneous Hypothesis Testing
The F statistic test shows that all
the independent variables included have an effect on the dependent variable. Where
the criteria are if the level of = 0.05 and if the p-value <α.
Table 4 F . Test
|
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
1 Regression |
12. 394 |
8 |
1. 549 |
6. 941 |
. 000b |
|
Residual |
6. 473 |
29 |
. 223 |
|
|
|
Total |
18. 868 |
37 |
|
|
|
Dependent Variable: TATO
Predictors: (Constant), DIVIDEND PER
SHARE, CURRENT RATIO, ROE, DAR, ROA, NET WORKING CAPITAL
Table 4 shows that the calculated F
value is 6,941 and F table the significant value is 0.05 while DF1 and DF2 are
obtained by the formula DF1= number of variables-1=8-1=7, DF2= sample � number
of variables= 38-8 = 30 which is 2, 33. So we get F count < F table (6, 941
> 2, 33). So that the variables ROE, Net Working Capital , DAR, ROA, Current
Ratio, Quick Ratio and Persaham Devidents have a significant influence on the
financial performance of manufacturing companies in the food and beverage
sub-sector listed on the IDX.
Research Discussion
The Effect of ROE on the Company's Financial
Performance
Based on the partial hypothesis
test/T test, the results show that t count < t table (1, 151 < 2, 04227)
with a significant value of 0, 259 > 0, 05, which means that ROE has no
effect and is not significant on the financial performance of manufacturing companies
in the sub-sector. food and beverages listed on the Indonesia Stock Exchange in
2018-2020. Thus, Ha is rejected while Ho is accepted. This study is not in line
with previous research by Mokodaser et al
(2015) which showed ROE had a significant effect on
financial performance. ROE has no significant effect on financial performance
may be due to a decrease in the rate of return on assets.
The Effect of NET WORKING CAPITAL on the
Company's Financial Performance
Based on the partial hypothesis
test/T test, the results show that t count < t table (-1, 097 < 2, 04227)
with a significant value of 0, 282 > 0, 05 which means that net working
capital has no effect and is not significant on the company's financial
performance. food and beverage sub-sector manufacturing listed on the Indonesia
Stock Exchange in 2018-2020. Thus, Ha is rejected while Ho is accepted. This
study is not in line with previous research by Agustina et al
(2015) which showed that Net Working Capital had a
significant effect on financial performance. Net Working Capital has no
significant effect on financial performance due to inefficient working capital
as seen from the slow working capital turnover.
The Effect of DAR on the Company's Financial
Performance
Based on the partial hypothesis test/T
test, the results show that t count < t table (- 0, 284 < 2, 04227) with
a significant value of 0, 779 > 0, 05 which means that DAR has no effect and
is not significant on the financial performance of manufacturing companies in
the food sub sector. and beverages listed on the Indonesia Stock Exchange in
2018-2020. Thus, Ha is rejected while Ho is accepted. This research is in line
with previous research by Umami &
Budiarti (2019) which showed that DAR had no significant effect
on financial performance. DAR does not have a significant effect on financial
performance because at the time of sampling, the debt ratio owned by the
company is quite high, so the profit generated is not enough to pay loan
interest and will result in a default (default) so the company's financial
performance produced will decrease.
The Effect of ROA on the Company's Financial
Performance
Based on the partial hypothesis test
/ T test, the results show that t count < t table (1. 263 < 2, 04227)
with a significant value of 0, 216 > 0, 05 which means that roa has no
effect and is not significant on the financial performance of sub-sector
manufacturing companies. food and beverage listed on the Indonesia Stock
Exchange in 2018-2020. Thus, Ha is rejected while Ho is accepted. This study is
not in line with previous research by Lestari (2017) which showed that Roa had a significant effect
on financial performance. ROA has no significant effect on financial
performance because the smaller ROA indicates the company's performance is
getting worse, because the return is getting smaller. A decrease in ROA means
that the company's profitability decreases, so there is a decrease in
profitability that will not be enjoyed by shareholders.
The Influence of CURRENT RATIO on the Company's
Financial Performance
Based on the partial hypothesis
test/T test, the results show that t count < t table (4, 011 > 2, 04227)
with a significant value of 0, 00 < 0, 05 which means that the current ratio
has a significant effect on the financial performance of manufacturing
companies in the food sub sector. and beverages listed on the Indonesia Stock
Exchange in 2018-2020. Thus, Ha is accepted while Ho is rejected. This research
is in line with previous research by Emmi Fernando Saragi, Oktavianti and
Yannik Ariyati (2015) which showed that the Current Ratio had a significant
effect on financial performance. The current ratio has a significant effect on
financial performance because the company is able to show the extent to which
current assets cover current liabilities. The greater the ratio of current
assets to current liabilities, the higher the company's ability to cover its
short-term liabilities.
The Effect of dividends per share on the
company's financial performance
Based on the partial hypothesis
test, the T test shows that t count < t table (-0.465 < 2, 04227) with a
significant value of 0.646 > 0.05 which means that dividend policy has no
effect and is not significant on the financial performance of manufacturing
companies in the food sub-sector. and beverages listed on the Indonesia Stock
Exchange in 2018-2020. Thus, Ha is rejected while Ho is accepted. This study is
in line with previous research by Damarjati &
Fuad (2019) which showed that the dividend policy had no
significant effect on financial performance. Dividend policy had no significant
effect on financial performance because shareholders only wanted to take
short-term profits by obtaining capital gains.
CONCLUSION
The conclusion of this study is that
ROE partially does not significantly affect the financial performance of
manufacturing companies in the food and beverage sub-sector listed on the IDX
for the 2018-2020 period. Intellectual Capital partially does not significantly
affect the financial performance of manufacturing companies in the food and
beverage sub-sector. beverages on the IDX for the 2018-2020 period. Leverage
partially has no significant effect on the financial performance of the food
and beverage sub-sector manufacturing companies listed on the IDX for the
2018-2020 period. ROA partially does not significantly affect the financial
performance of manufacturing companies. the food and beverage sub-sector
contained on the IDX for the 2018-2020 period. Liquidity partially has a
significant effect on the financial performance of manufacturing companies in
the food and beverage sub-sector listed on the IDX for the 2018-2020 period.
Dividend policy partially does not significantly affect the financial
performance of manufacturing companies in the food and beverage sub-sector
listed on the Indonesia Stock Exchange for the 2018-2020 period, ROE,
Intellectual Capital, Leverage, ROA, Liquidity and Dividend Policy have an
effect on financial performance with a coefficient of determination of 5, 7%
while the other 94.3% were influenced by other variables not included in this
study.
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Copyright holders:
Vince Titania Adriana br Bukit, Delma Oriza
Manik, Christina H. Grace Napitupulu, Elprida Tambunan (2022)
First publication right:
Devotion -
Journal of Community Service
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