FACTORS AFFECTING SUSTAINABLE GROWTH RATE ON MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE PERIOD 2015-2018
Keywords:
Sustainable Growth Rate, Current Ratio, Debt to Equity Ratio, Asset Turnover
Abstract
Many companies only focus on income and profits. However, income and profits cannot be the main focus because the growth of the company's sustainability becomes important. Measuring sustainable growth is an important factor in looking at improving company performance. This measurement uses the concept of growth which is commonly called the Sustainable Growth Rate (SGR). This study aims to provide empirical evidence that is approved or not, liquidity is varied by Current Ratio (CR), leverage is variable Debt to Equity Ratio (DER), and efficiency is variable by Asset Turnover (TATO). The population used in this study is manufacturing companies incorporated in the Indonesia Stock Exchange (IDX). The technique used in taking the number of samples is purposive sampling in order to obtain a sample of 50 companies in the 2015-2018 research period. Data were analyzed using panel data regression techniques. The results of the study found that the Current Ratio (CR) and Asset Turnover (TATO) variables did not have a significant effect on SGR while the DER variable had a positive effect on SGR. This research tells us that SGR is very important because it is related to the strategy used by the company in order to experience sustainable growth.
References
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Cheryta, A. M., Moeljadi, M., & Indrawati, N. K. (2018). Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia. Jurnal Keuangan Dan Perbankan, 22(1), 83–93. https://doi.org/10.26905/jkdp.v22i1.1334
Deakin, E. B. (1976). Distributions of Financial Accounting Ratios : Some Empirical Evidence. The Accounting Review, 51(1), 90–96.
Gunawan, B., & Leonnita, D. P. (2015). Pengaruh Kinerja Keuangan terhadap Deviation Actual Growth Rate dari Sustainable Growth Rate. Jurnal Riset Akuntansi Dan Bisnis, 15(2), 11.
Hartono, G. C., & Utami, S. R. (2016). The Comparison of Sustainable Growth Rate, Firm’S Performance and Value Among the Firms in Sri Kehati Index and Idx30 Index in Indonesia Stock Exchange. International Journal of Advanced Research in Management and Social Sciences, 5(5), 68–81. Retrieved from http://www.garph.co.uk/IJARMSS/May2016/7.pdf
Haryanto, S. (2016). Determinan Permodalan Bank Melalui Profitabilitas, Risiko, Ukuran Perusahaan, Efisiensi Dan Struktur Aktiva. Jurnal Ekonomi Dan Bisnis, 18(1), 117. https://doi.org/10.24914/jeb.v19i1.483
Higgins, R. C. (1977). Much Growth Can Firm Afford ? 6(3), 7–16.
Higgins, R. C. (1981). Sustainable Growth under Inflation. Financial Management, 10(4), 36. https://doi.org/10.2307/3665217
Junaidi, S., Sulastri, S., Isnurhadi, I., & Adam, M. (2019). Liquidity, asset quality, and efficiency to sustainable growth rate for banking at Indonesia Stock Exchange. Jurnal Keuangan Dan Perbankan, 23(2), 308–319. https://doi.org/10.26905/jkdp.v23i2.2699
Khatin, K. N., Anjaswara, B., & Utami, S. R. (2016). The Effect Of Return On Asset, Current Ratio, Price To Earning Ratio, And Stock Price On Sustainable Growth Rate Of Firms In Business-27 Index And Sri Kehati Index In Indonesia Stock Exchange. International Journal of Advanced Research in Management and Social Sciences, 5(8), 130–144.
Kristanti, F. T., Hendrawan, R., & Alrasidi, S. E. S. (2019). The differences between family firms and non-family firms: Evidence in Indonesia. Jurnal Keuangan Dan Perbankan, 23(2), 206–216. https://doi.org/10.26905/jkdp.v23i2.2687
Lockwood, L., & Prombutr, W. (2010). Sustainable growth and stock returns. Journal of Financial Research, 33(4), 519–538. https://doi.org/10.1111/j.1475-6803.2010.01281.x
Manaf, N. B. A., Saad, N. B. M., Mohamad, N. E. A. B., Ali, I. B. M., & Rahim, N. B. (2018). Determinants of Sustainability Growth Rate (SGR) By Using Zakon’s Model To Encounter With Shariah Compliance Requirements For Shariah Securities Compliance Firms in Malaysia. International Journal of Industrial Management, 4(June), 61–69. Retrieved from http://ijim.ump.edu.my/images/IJIM-4/IJIM4-4.pdf
Martani, D., & Khairurizka, R. (2009). The effect of financial ratios, firm size, and cash flow from operating activities in the interim report to the stock return. Chinese Business Review, 08(06), 44–55. https://doi.org/10.17265/1537-1506/2009.06.005
Nasim, A., & Rizki Irnama, F. (2015). Pengaruh Profit Margin, Assets Turnover Dan Leverage Terhadap Sustainable Growth Rate Pada Perusahaan Sektor Jasa Yang Terdaftar Di Bursa Efek Indonesia Periode 2010-2012. Jurnal Riset Akuntansi Dan Keuangan, 3(1), 632. https://doi.org/10.17509/jrak.v3i1.6609
Nirali Pandit, R. T. (2011). Sustainable Growth Rate of Textile and Apparel Segment of the Indian Retail Sector. Global Journal of Management and Business Research, 11(6), 39–44. Retrieved from https://www.journalofbusiness.org/index.php/GJMBR/article/view/515/458
Norfhadzilahwati Rahim*; Maryam Badrul Munir. (2018). The Sustainable Growth Rate Of Firm In Malaysia: A Panel Data Analysis. Journal of Islamic Social Sciences and Humanities, 16(9), 1689–1699. https://doi.org/10.1017/CBO9781107415324.004
Ofoegbu, G., Duru, N. A., & Onodugo, V. (2016). Liquidity Management and Profit Performance of Pharmaceutical Manufacturing Firms Listed In Nigeria Stock Exchange. International Journal of Management Sciences and Business Research, 5(7), 1–13.
Olson, G. T., & Pagano, M. S. (2005). A new application of sustainable growth: A multi-dimensional framework for evaluating the long-run performance of bank mergers. Journal of Business Finance and Accounting, 32(9–10), 1995–2036. https://doi.org/10.1111/j.0306-686X.2005.00656.x
Park, K., & Jang, S. C. (Shawn). (2013). Capital structure, free cash flow, diversification, and firm performance: A holistic analysis. International Journal of Hospitality Management, 33(1), 51–63. https://doi.org/10.1016/j.ijhm.2013.01.007
Platt, H. D., Platt, M. B., & Chen, G. (1995). The sustainable growth rate of firms in financial distress. Journal of Economics and Finance, 19(2), 147–151. https://doi.org/10.1007/BF02920515
Shaikh, S. A. (2011). A Brief Review & Introduction to Practiced Islamic Banking & Finance. SSRN Electronic Journal, 35–36. https://doi.org/10.2139/ssrn.1536943
Snyman, H. A. (1999). Short-term effects of soil water, defoliation, and rangeland condition on the productivity of semi-arid rangeland in South Africa. Journal of Arid Environments, 43(1), 47–62. https://doi.org/10.1006/jare.1999.0533
Steblyanskaya, A., Wang, Z., Ryabova, E., Razmanova, S., & Rybachuk, M. (2019). Are Sustainable Growth Indicators in Gas Market Companies Comparable? The Evidence from China and Russia. Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438, 13(1), 76–92. https://doi.org/10.17323/j.jcfr.2073-0438.13.1.2019.76-92
Thalib, D. (2016). Intermediasi, Struktur Modal, Efisiensi, Permodalan Dan Risiko Terhadap Profitabilitas Bank. Jurnal Keuangan Dan Perbankan, 20(1), 116–126. https://doi.org/10.26905/jkdp.v20i1.155
Utami, D., S., Muthia, F., & Husni Thamrin, K. M. (2018). Sustainable Growth: Grow and Broke Empirical Study on Manufacturing Sector Companies Listed on the Indonesia Stock Exchange. KnE Social Sciences, 3(10), 820–834. https://doi.org/10.18502/kss.v3i10.3427
Zulkarnaen, W., & Suwarna, A. (2017). Pengaruh Insentif Terhadap Kinerja Karyawan Di Bagian Mekanik PT. Erlangga Aditya Indramayu. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 1(1), 33-52. DOI: https://doi.org/10.31955/mea.vol1.iss1.pp33-52
Published
2020-05-02
How to Cite
Priyanto, A., & Robiyanto, R. (2020). FACTORS AFFECTING SUSTAINABLE GROWTH RATE ON MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE PERIOD 2015-2018. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 4(2), 1-21. https://doi.org/10.31955/mea.v4i2.287
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