THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH
Introduction: The relationship between companies and economic growth needs to be analyzed. What if the company's performance is not effective then economic growth will not be in good condition or the company's financial performance does not affect economic growth. Methods: This research...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Fakultas Ekonomi dan Bisnis, Universitas Airlangga
2023-05-01
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| Series: | Jurnal Ekonomi dan Bisnis Airlangga |
| Online Access: | https://e-journal.unair.ac.id/JEBA/article/view/45072 |
| _version_ | 1797272640840269824 |
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| author | Aji Binawan Putra Muhammad Wakhid Musthofa |
| author_facet | Aji Binawan Putra Muhammad Wakhid Musthofa |
| author_sort | Aji Binawan Putra |
| collection | DOAJ |
| description | Introduction: The relationship between companies and economic growth needs to be analyzed. What if the company's performance is not effective then economic growth will not be in good condition or the company's financial performance does not affect economic growth.
Methods: This research is a quantitative study using the balanced scorecard method with variables namely financial ratio indicators ROA and DER, and economic growth as measured by Gross Domestic Product (GDP). Data were collected from the financial reports of 11 companies for 10 years, and were processed using panel data regression analysis with the Random Effect Model (REM) approach with the help of the Econometric Views 10 Application (Eviews 10).
Results: The results of the study show that ROA and DER have no effect on Indonesia's economic growth.
Conclusion and suggestion: This study can be used as an additional reference in financial management activities, and then for institutions that have supervisory authority to ensure that the profits and debts of a company must be strictly controlled so that in the future financial performance can increase economic growth. |
| first_indexed | 2024-03-07T14:31:19Z |
| format | Article |
| id | doaj.art-b4b55840e23040e6a6b7ba19198b9255 |
| institution | Directory Open Access Journal |
| issn | 2338-2686 2597-4564 |
| language | English |
| last_indexed | 2024-03-07T14:31:19Z |
| publishDate | 2023-05-01 |
| publisher | Fakultas Ekonomi dan Bisnis, Universitas Airlangga |
| record_format | Article |
| series | Jurnal Ekonomi dan Bisnis Airlangga |
| spelling | doaj.art-b4b55840e23040e6a6b7ba19198b92552024-03-06T04:34:53ZengFakultas Ekonomi dan Bisnis, Universitas AirlanggaJurnal Ekonomi dan Bisnis Airlangga2338-26862597-45642023-05-01331536710.20473/jeba.V33I12023.53-6743157THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTHAji Binawan Putra0https://orcid.org/0009-0004-4109-5488Muhammad Wakhid Musthofa1https://orcid.org/0000-0002-1754-726XMagister Ekonomi Syariah, Fakultas Ekonomi dan Bisnis Islam, UIN Sunan Kalijaga YogyakartaMatematika, Fakultas Sains dan Teknologi, UIN Sunan Kalijaga YogyakartaIntroduction: The relationship between companies and economic growth needs to be analyzed. What if the company's performance is not effective then economic growth will not be in good condition or the company's financial performance does not affect economic growth. Methods: This research is a quantitative study using the balanced scorecard method with variables namely financial ratio indicators ROA and DER, and economic growth as measured by Gross Domestic Product (GDP). Data were collected from the financial reports of 11 companies for 10 years, and were processed using panel data regression analysis with the Random Effect Model (REM) approach with the help of the Econometric Views 10 Application (Eviews 10). Results: The results of the study show that ROA and DER have no effect on Indonesia's economic growth. Conclusion and suggestion: This study can be used as an additional reference in financial management activities, and then for institutions that have supervisory authority to ensure that the profits and debts of a company must be strictly controlled so that in the future financial performance can increase economic growth.https://e-journal.unair.ac.id/JEBA/article/view/45072 |
| spellingShingle | Aji Binawan Putra Muhammad Wakhid Musthofa THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH Jurnal Ekonomi dan Bisnis Airlangga |
| title | THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH |
| title_full | THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH |
| title_fullStr | THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH |
| title_full_unstemmed | THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH |
| title_short | THE IMPACT OF COMPANY FINANCIAL PERFORMANCE ON ECONOMIC GROWTH |
| title_sort | impact of company financial performance on economic growth |
| url | https://e-journal.unair.ac.id/JEBA/article/view/45072 |
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