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Coal Price and Profitability: Evidence of Coal Mining Companies in Indonesia

Author

Listed:
  • Endri Endri

    (Universitas Mercu Buana, Jakarta, Indonesia)

  • Andyan Pradipta Utama

    (Universitas Mercu Buana, Jakarta, Indonesia)

  • Aminudin Aminudin

    (Institut Teknologi dan Bisnis Ahmad Dahlan Jakarta, Indonesia)

  • Maya Syafriana Effendi

    (Universitas Persada Indonesia Y.A.I, Jakarta, Indonesia,)

  • Bambang Santoso

    (Politeknik Krakatau, Banten, Indonesia,)

  • Achmad Bahiramsyah

    (Direktorak Jenderal Pajak, Kementerian Keuangan Republik, Indonesia)

Abstract

The study examines the influence of certain industrial factors, namely the reference price for Indonesian coal (HBA), and internal factors, namely; debt to equity ratio (DER), growth, current asset (CR), and company size (size) to profitability (ROA) of coal companies Indonesia during 2015-2019. The study population was all coal companies listed on the IDX before 2015. By using a purposive sampling technique, 13 companies were obtained. The research variable data was estimated using the Panel data method. The results show that DER adversely affects ROA, and company growth is in line with the increase in ROA. HBA and CR variables do not affect ROA. The implication of the research results is to increase profitability, the company to increase sales through business diversification other than coal products, and reduce the total debt held so that it does not become a heavy payment burden.

Suggested Citation

  • Endri Endri & Andyan Pradipta Utama & Aminudin Aminudin & Maya Syafriana Effendi & Bambang Santoso & Achmad Bahiramsyah, 2021. "Coal Price and Profitability: Evidence of Coal Mining Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 363-368.
    • Handle: RePEc:eco:journ2:2021-05-40
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    References listed on IDEAS

    as
    1. Endri Endri & Muhamad Rinaldi & Dini Arifian & Bungaran Saing & Aminudin Aminudin, 2021. "Oil Price and Stock Return: Evidence of Mining Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 110-114.
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    Cited by:

    1. Rislima Febriani Sitompul & Endri Endri & Sawarni Hasibuan & Choesnul Jaqin & Arum Indrasari & Lia Putriyana, 2022. "Policy Challenges of Indonesia s Local Content Requirements on Power Generation and Turbine Production Capability," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 225-235.
    2. Pande Ketut Rheynaldi & Endri Endri & Minanari Minanari & Putri Andari Ferranti & Subur Karyatun, 2023. "Energy Price and Stock Return: Evidence of Energy Sector Companies in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 31-36, September.

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    More about this item

    Keywords

    Coal Price; Profitability; Coal Mining Companies; Indonesia;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices

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