Indonesian Financial Review

The Effect of Debt-to-Equity Ratio and Net Profit Margin on Dividend Payout Ratio at PT Mayora Indah Tbk During 2013-2024

Zahra Aulia Fahira — 2026-01-16

This study examines the effect of capital structure and profitability on dividend policy at PT Mayora Indah Tbk during the 2013–2024 period. Using a quantitative approach with multiple regression analysis, the Debt to Equity Ratio (DER) represents capital structure, Net Profit Margin (NPM) measures profitability, and the Dividend Payout Ratio (DPR) reflects dividend policy. The results show that, partially, DER has a significant negative effect on DPR, indicating that higher leverage constrains dividend distribution. NPM also has a significant negative effect on DPR, suggesting that profitability is often retained as internal financing rather than distributed as dividends. Simultaneously, DER and NPM significantly affect DPR. The coefficient of determination of 54.9% indicates that more than half of dividend payout variation is explained by these variables. The findings highlight the strategic role of leverage and profitability in dividend policy decisions.

Agency and Signaling Perspectives on Working Capital Turnover, Debt to Equity Ratio, and Profitability in PT Gudang Garam Tbk (2013–2023)

Den Ayu Zelpani — 2025-12-01

This study investigates the influence of Working Capital Turnover (WCTO) and Debt to Equity Ratio (DER) on the Net Profit Margin (NPM) of PT Gudang Garam Tbk during the 2013–2023 period. Using a quantitative approach with secondary financial data, hypothesis testing was conducted through the partial (t-test) and simultaneous (F-test) significance tests at a 5% alpha level. Data analysis employed SPSS version 24. The results indicate that WCTO has a significant partial effect on NPM, as reflected by a t-value of –2.819 < 2.306 and a significance level of 0.0223 < 0.05. Conversely, DER shows no significant partial effect on NPM, with a t-value of 1.666 < 2.306 and a significance value of 0.134 > 0.05. Simultaneously, WCTO and DER have a significant combined effect on NPM, evidenced by an F-value of 4.921 > 4.26 and a significance level of 0.040 < 0.05. The Adjusted R-squared of 43% indicates that the model explains nearly half of the variation in profitability.

Firm Value Determinants: Solvency, Asset Growth, and Profitability in the Food and Beverage Sector

Susilawati Susilawati — 2025-11-13

This study investigates the determinants of firm value by examining the roles of solvency, asset growth, and profitability in food and beverage companies listed on the Indonesia Stock Exchange (IDX). The research sample consists of eight leading firms selected through purposive sampling from 2018–2023, yielding 48 firm-year observations. Data were analyzed using multiple regression with SPSS to assess both partial and simultaneous effects. The results show that solvency has a negative but insignificant effect on firm value, indicating that higher debt levels may not necessarily enhance market perception. Conversely, asset growth and profitability exert positive and significant effects, implying that efficient asset management and strong earnings performance contribute to higher firm value. Simultaneously, the three variables significantly influence firm value, suggesting their collective importance in shaping investor confidence. These findings provide practical implications for managers and investors to strengthen financial decision-making and corporate performance in Indonesia’s food and beverage sector.

Evaluating Financial Risk and Pricing Accuracy Using Full Costing: A Case Study on UMKM Tempe Mbak Novi in Purworejo

Yeni Elfiza Abbas — 2025-12-06

This study evaluates the financial risk implications of pricing inaccuracy and analyzes the effectiveness of the full costing method in improving financial decision-making within small enterprises. Using a case study of UMKM Tempe Mbak Novi in Purworejo, Indonesia, the research integrates cost accounting with financial risk evaluation to assess how incomplete cost allocation affects profitability, liquidity, and cash flow stability. Data were collected through interviews, observations, and documentation. Results show that the firm’s cost-of-production calculation underestimates total costs by IDR 4,074,000 compared to the full costing approach. This mispricing leads to a potential profit loss of 24.1% and increases financial risk exposure, particularly cash flow volatility and underpricing risk. The findings suggest that implementing a full costing system enables more accurate pricing, strengthens financial sustainability, and reduces operational risk for micro and small enterprises

The Comparative Effectiveness of RSI and MACD Indicators in Managing Stock Price Volatility of Indonesian State-Owned Banks in 2024

Sunarto Sunarto — 2025-12-30

This study investigates the effectiveness of the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) in mitigating stock price volatility in Indonesian state-owned banks (BUMN) during 2024. Using a quantitative approach with daily secondary data, panel data regression with a Fixed Effect Model (FEM) was employed, supported by classical assumption tests, t-tests, and F-tests. The findings show that RSI and MACD each have a significant positive effect on stock prices, and together explain 98.45% of price movements. RSI effectively identifies overbought and oversold conditions, signaling potential corrections, while MACD consistently captures trend momentum and reversals. The integration of both indicators provides a more robust analytical framework for anticipating volatility and optimizing investment decisions. This study enriches technical analysis literature by highlighting the complementary roles of RSI and MACD in strengthening decision-making strategies amid market uncertainty in emerging capital markets.

Analyzing the Effects of Financial Indicators on Stock Prices in Non-Cyclical Consumer Firms: Evidence from Indonesia

Novianti Siagian — 2026-01-13

This study examines the effect of short-term debt, financial leverage, and market value on stock prices of non-cyclical consumer companies listed on the Indonesia Stock Exchange during the 2021–2025 period. Using a quantitative explanatory approach, the analysis applies panel data regression estimated with EViews. The results show that short-term debt and financial leverage do not have a statistically significant impact on stock prices, indicating that liquidity and capital structure are not primary valuation considerations in this defensive sector. In contrast, market value, proxied by earnings per share (EPS), has a positive and significant effect on stock prices, highlighting the central role of profitability and investor perception in price formation. These findings suggest that the relevance of financial indicators is sector-dependent, with profitability-based signals dominating investor decision-making in non-cyclical consumer firms. This study contributes sector-specific empirical evidence under the post-reclassification market environment and provides practical insights for investors and corporate managers. Future research is encouraged to include additional variables or cross-sector comparisons.

The Influence of Earnings Per Share and Return On Investment on Stock Prices in The Banking Sector Listed on IDX

Intan Sari Budhiarjo — 2026-01-13

This study aims to examine the effect of Earnings Per Share (EPS) and Return on Investment (ROI) on stock prices in the banking sector listed on the Indonesia Stock Exchange. A quantitative approach is employed using secondary data from published financial statements. The sample consists of six banking companies selected from a population of 46 firms based on predetermined criteria. Data analysis includes descriptive statistics, panel data regression, hypothesis testing, and the coefficient of determination. The results show that EPS does not have a significant partial effect on stock prices, while ROI has a significant positive effect. Simultaneously, EPS and ROI significantly influence stock prices, indicating that profitability indicators play an important role in explaining stock price movements in the Indonesian banking sector.

The Influence of Audit Quality, Good Corporate Governance, and Operational Efficiency on Company Profitability

Suharna Suharna — 2026-01-13

Transportation infrastructure companies operate in capital-intensive and highly regulated environments that demand strong internal controls and operational efficiency to maintain profitability. This study investigates the effects of audit quality, good corporate governance (GCG), and operational efficiency on profitability using secondary data from ten transportation infrastructure firms listed on the Indonesia Stock Exchange during 2020–2024. Multiple linear regression analysis reveals that operational efficiency significantly influences profitability, while audit quality and GCG show no significant partial effects. Nevertheless, simultaneous testing confirms that all variables jointly affect profitability. These findings indicate that profitability is primarily efficiency-driven, with governance and audit mechanisms serving complementary roles in enhancing stability and risk control rather than short-term financial performance.

An Empirical Analysis of the Effects of Interest Rates and Exchange Rates on Stock Prices: Evidence from Astra International Plc

Hendri Gunawan — 2026-01-14

This study examines the effect of interest rates and exchange rates on stock prices of PT Astra International Tbk during the 2015–2024 period. Using a quantitative approach, the research applies multiple linear regression to secondary time-series data from Bank Indonesia and Investing.com. Classical assumption tests were conducted to ensure model reliability. The results show that interest rates do not have a significant partial effect on Astra’s stock price, while the exchange rate has a negative and significant influence. Simultaneously, interest rates and exchange rates do not significantly affect stock prices. The coefficient of determination indicates that 54.4 percent of stock price variation is explained by the two macroeconomic variables. These findings imply that exchange rate movements play a more important role than interest rates in shaping Astra’s stock performance and provide insights for investors in the Indonesian capital market.