IDEAS home Printed from https://ideas.repec.org/a/pkp/teafle/v6y2019i1p78-91id1621.html
   My bibliography  Save this article

Profitability Behavior of Plastic Industries in Indonesia

Author

Listed:
  • Erwin Mangaratua Pardosi
  • Bambang Mulyana

Abstract

This study aims to analyze the effects on the profitability (net profit margin, return on assets and return on equity) of plastic companies by internal influences (current ratio, debt to equity ratio and total asset turnover) and external influences (exchange rate, petroleum price and inflation). The object of the research is the plastic industries registered in the Indonesian stock exchange with a total of 9 industries and in the period 2012 - 2017. The methodology used is descriptive quantitative research and causality with purposive sampling technique and panel data regression analysis. The results of this study indicate that the current ratio has a partially positive effect, particularly significant in terms of net profit margin. Current ratio and total asset turnover also have a partially positive effect, with significant return on assets. Debt to equity ratio partially has a partially negative effect, but a significant return on equity.

Suggested Citation

  • Erwin Mangaratua Pardosi & Bambang Mulyana, 2019. "Profitability Behavior of Plastic Industries in Indonesia," The Economics and Finance Letters, Conscientia Beam, vol. 6(1), pages 78-91.
    • Handle: RePEc:pkp:teafle:v:6:y:2019:i:1:p:78-91:id:1621
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/29/article/view/1621/2254
    Download Restriction: no
    File URL: https://archive.conscientiabeam.com/index.php/29/article/view/1621/4846
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:teafle:v:6:y:2019:i:1:p:78-91:id:1621. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/29/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.