The Effect of Economic Growth, Inflation and VAT (Value Added Tax) on the profitability of Automotive Sector companies listed on the IDX
Article Sidebar
Main Article Content
Abstract
Research aim: This study aims to analyse the effect of macroeconomic factors, specifically economic growth, inflation, and VAT, on the profitability of companies in the automotive sector in Indonesia.
Design/Method/Approach: This research uses a quantitative causality approach. The data used is secondary data obtained from the company's financial statements and macroeconomic indicators obtained from the Central Bureau of Statistics and the Ministry of Finance Website.
Research Finding: The results showed that economic growth has a positive and significant effect on corporate profitability, while inflation and VAT have no significant effect. This finding indicates that the increasing purchasing power of the community along with economic growth contributes to the increase in corporate profits.
Theoretical contribution/Originality: This study contributes to enriching the literature on the relationship between macroeconomic factors and firm profitability, particularly in the automotive sector. This study also adds a new perspective on the influence of macroeconomic conditions on corporate financial performance.
Practitionel/Policy implication: The results of this study can be used by business people and policy makers to design more adaptive business strategies in the face of changing macroeconomic conditions. Companies can focus more on operational efficiency and price adjustment strategies to reduce the impact of inflation and taxation policies on profitability.
Research limitation: This study has some limitations, such as the scope of the study being limited to the automotive sector in Indonesia, so the results may not be generalisable to other sectors. In addition, other external factors, such as interest rates and currency exchange rates, were not analysed in depth. Therefore, future research is recommended to expand the scope of the industry sectors studied and consider more macroeconomic variables in order to obtain a more comprehensive understanding of the factors that affect company profitability.
Article Details
Section
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
References
[1] A. Inrawan, D. Lie, L. E. Nainggolan, H. P. Silitonga, and A. Sudirman, “The Effect of Inflation, Interest Rates, Exchange Rates, Economic Growth, Capital Expenditure, and Leverage on Profitability (Study on LQ 45 Index Companies Listed on the Indonesia Stock Exchange),” Semin. Nas. Has. Ris. dan Pengabdi. Kpd. Masy. Univ. Sahid Surakarta, vol. 2, 2022.
[2] A. S. Ningsih, Sugiono, and H. Purnomo, “The Influence of ROE, CR and DER on PBV in Oil and Gas and Coal Subsector Companies on the IDX,” Simp. Manaj. dan Bisnis, vol. 3, no. 1, pp. 778–790, 2024, doi: https://doi.org/10.29407/2cdpyw82.
[3] M. D. Christianingrum and D. A. Paramitha, “THE INFLUENCE OF CURRENT RATIO, DEBT TO ASSETS RATIO, TOTAL ASSETS TURN OVER, AND NET PROFIT MARGIN ON PROFIT CHANGES IN PROPERTIES AND REAL ESTATE SECTOR COMPANIES,” pp. 761–769, 2022, doi: https://doi.org/10.29407/ef1f8q94.
[4] T. R. Vianda, B. Zaman, P. Astuti, and Sugeng, “The Influence of Return on Assets, Debt to Equity Ratio and Cash Ratio on Company Value (Case Study on the Indonesian Stock Exchange 2020-2023),” J. Simp. Manaj. dan Bisnis III, vol. 3, pp. 99–106, 2024, doi: https://doi.org/10.29407/wep54s30.
[5] S. Sukirno, Development Economics: Process, problems, and policies. Jakarta: KENCANA PREDANA MEDIA GROUP, 2014.
[6] S. Sukirno, Macroeconomics: Introductory Theory, 3rd ed. Jakarta: Rahjawali Pers, 2016.
[7] H. Isnurhadi, The Effect of Macroeconomic Fundamental Factors On Corporate Value Through Financial Performance As Intervening Variables In Manufacturing Companiesn In Indonesia Stock Exchange. 2018.
[8] I. D. Puspasari, H. Pratikto, and P. Handayani, “Identification of Statement Ambiguity ih the HPP Law : Tax Consultant Perception,” vol. 5, no. 7, 2022, doi: http://dx.doi.org/10.47814/ijssrr.v5i7.344 Abstract.
[9] Z. D. Santika, Subagyo, and M. W. Widodo, “Factors influencing the capital structure of pharmaceutical companies listed on the IDX for the 2015-2020 period,” Fair Value J. Ilm. Akunt. dan Keuang., vol. 5, no. 3, pp. 1667–1677, 2022, doi: 10.32670/fairvalue.v5i3.2473.
[10] K. Anugrah, R. C. Simanjorang, A. R. H. Hutabarat, R. J. Pakpahan, and T. T. U. Sipahutar, “Pengaruh Pertumbuhan Ekonomi dan Inflasi terhadap Profitabilitas pada Perusahaan Makanan dan Minuman di BEI,” Own. (Riset dan J. Akuntansi), vol. 4, no. 2, p. 442, 2020, doi: 10.33395/owner.v4i2.269.
[11] R. Rasjidi, Research Methodology. Jakarta: Universitas Islam Jakarta, 2016. [Online]. Available: https://www.academia.edu/42283076/Metodologi_Penelitian
[12] SUGIYONO, Educational Research Methods Quantitative, Qualitative And R&D Approaches. Bandung: CV ALFABETA, 2015.
[13] Sudarno, Financial Research Theory, Andi. Malang: CV. Literasi Nusantara Abadi, 2022.
[14] F. N. Sitorus, S. M. Ningrum, N. Yuliana, and B. R. M. Nainggolan, “The Effect of Liquidity Ratio, Profitability Ratio, Economic Growth and Public Consumption on Company Profits in the Consumer Goods Industry Sector on the Indonesia Stock Exchange 2017 - 2020,” Manag. Stud. Entrep. J., vol. 3, 2021, doi: https://doi.org/10.37385/msej.v3i3.567.
[15] S. Astuty, Ekonomi Moneter, 1st ed. Makasar: Tahta Media Group, 2023.
[16] F. Anggraini, “The Effect of Profitability, Company Size, Liquidity, Solvency, and Inflation on Firm Value (Empirical Study of Companies Consistently Listed in the Lq-45 Index for the 2016-2018 Period),” 2020. [Online]. Available: http://eprints.ums.ac.id/id/eprint/81147
[17] E. G. and P. C. on C. P. in the C. G. I. S. on the I. S. E. 2017-2020 The Effect of Liquidity Ratio, Profitability Ratio, “The,” Pengaruh Pertumbuhan Ekon. dan Inflasi terhadap Profitab. pada Perusah. Makanan dan Minuman di BEI, vol. 4, no. 2, 2020, doi: 10.33395/owner.v4i2.269.
[18] A. S. Suryahadi, “VAT Rises to 12% Next Year, Here’s the Impact on the Economy and Capital Markets,” Makmur.