The Role of Product Development Costs in Moderate Managerial Ownership Seen From The Indicators of Return on Asset, Cash Ratio, and Total Asset Turnover

Devi Putri Ananda; Denny Kurnia; Deni Sunaryo

doi:10.61132/ijema.v1i3.165

Authors

Devi Putri Ananda Universitas Serang Raya
Denny Kurnia Universitas Serang Raya
Deni Sunaryo Universitas Serang Raya

DOI:

https://doi.org/10.61132/ijema.v1i3.165

Keywords:

Managerial Ownership, Product Development Costs, ROA, CR, TATO

Abstract

This research aims to determine the effect of Return on Assets, Cash Ratio, Total Assets Turnover to Managerial Ownership with Product Development Costs as a Moderating Variable. This research uses the Pharmaceutical subsector company objects on the Indonesia and Malaysia Stock Exchanges for the 2013-2021 period. The data collected is secondary data with a documentation method in the form of the company's annual report. The analytical tool used to test the hypothesis is IBM SPSS V21. The sampling method used in this research used a purposive sampling technique to obtain 10 companies that presented complete financial reports, resulting in 90 samples. The analysis technique used is descriptive statistical analysis, classical assumption test, moderated regression analysis (MRA), multiple linear regression, t test, and f test. The research results partially concluded that Return on Assets and Cash Ratio influences managerial ownership while Total Assets Turnover has no effect on Managerial Ownership. The results of the research simultaneously show a calculated f value of 3.099 and an f table of 2.71, meaning calculated f > f table or a significance value of 0.031 <0.05. So Return on Assets, Cash Ratio, and Total Assets Turnover has a simultaneous effect on Managerial Ownership. Research results Moderated Regression Analysis (MRA) shows that Product Development Costs can moderate the Return relationship on Assets to Managerial Ownership and Product Development Costs can moderate the Cash relationship Ratio to Managerial Ownership. Meanwhile, Product Development Costs cannot moderate the Total Asset relationship Turnover on Managerial Ownership. For further research, it is hoped that it will examine other sub-sectors and add other variables.

Downloads

Download data is not yet available.

References

Abbassi, W., Hunjra, A.I., Alawi, S.M., & Mehmood, R. (2021). The Role of Ownership Structure and Board Characteristics in Stock Market Liquidity. International Journal of Financial Studies, 9(4). https://doi.org/10.3390/ijfs9040074

Ahmad, N., Shah, F.N., Ijaz, F., & Ghouri, M.N. (2023). Corporate income tax, asset turnover and Tobin's Q as firm performance in Pakistan: Moderating role of liquidity ratio. CogentBusinessandManagement, 10(1). https://doi.org/10.1080/23311975.2023.2167287

Alkurdi, A., Hamad, A., Thneibat, H., & Elmarzouky, M. (2021). Ownership structure's effect on financial performance: An empirical analysis of Jordanian listed firms. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1939930

Ardana Putra, INN, Abdul Mannan, SS, Ary Gumanti, T., & Sukendri, N. (2019). The effect of managerial ownership on liquidity, agency costs and performance of credit society banks in West Nusa Tenggara Province of Indonesia. In Business Innovation and Development in Emerging Economies (pp. 124–133). CRC Press. https://doi.org/10.1201/9780429433382-13

Ben Aissa, S., & Goaied, M. (2015). Determinants of Tunisian hotel profitability: The role of managerial efficiency. Tourism Management, 52, 478–487. https://doi.org/10.1016/j.tourman.2015.07.015

Cashmere. (2018). Analysis Report Finance. PT Raja Grafindo Homeland. Cashmere. (2019). Analysis Report Finance. Rajawali Press.

Chadha, S., & Sharma, A.K. (2015). Capital Structure and Firm Performance: Empirical Evidence from India. Vision: The Journal of Business Perspectives, 19(4), 295–302. https://doi.org/10.1177/0972262915610852

Dimitropoulos, P. E. (2020). R&D investments and profitability during the crisis: evidence from Greece.

Du, J., Wu, F., & Liang, X. (2016). Corporate liquidity and firm value: evidence from China's listed firms.

Effendi, MA (2016). The Power of Corporate Governance: Theory and Implementation. Salemba Four.

Erdogan, M., & Yamaltdinova, A. (2019). A Panel Study of the Impact of R&D on Financial Performance: Evidence from an Emerging Market. Procedia Computer Science, 158, 541–545. https://doi.org/10.1016/j.procs.2019.09.087

Ikin, S., Mimin, W., & Sofie, DL (2013). Influence Structure Ownership, Capital Structure, and Company Size on Company Value in Mining Sector Companies listed on the IDX. Journal of Accounting and Finance Research, 3, 774–790.

Imanta, D. (2011). FACTORS AFFECTING OWNERSHIP MANAGERIAL. Business And Accounting, 13, 67–80.

Kurniawan, A. (2021). ANALYSIS OF THE EFFECT OF RETURN ON ASSET, DEBT TO EQUITY RATIO, AND TOTAL ASSET TURNOVER ON SHARE RETURN. JOURNAL OF INDUSTRIAL ENGINEERING & MANAGEMENT RESEARCH, 2(1), 2722–8878. https://doi.org/10.7777/jiemar

Lee, M., & Choi, M. (2015). The Determinants of Research and Development Investment in the Pharmaceutical Industry: Focus on Financial Structures. Osong Public Health and Research Perspectives, 6(5), 302–309. https://doi.org/10.1016/j.phrp.2015.10.013

Peng, K. L., Qiu, H., Lin, P. M. C., & Au, W. C. (2021). Ownership Structure and Performance of China's A-Share-Listed Benchmark Hotels. Journal of China Tourism Research, 18(3), 651–669. https://doi.org/10.1080/19388160.2021.1925612

Sugiyono. (2015). Educational Research Methods: Approaches Quantitative, Qualitative, and R&D. Alphabet.

Sugiyono. (2019). Research methods Quantitative, Qualitative, and R&D. Alphabet. Sujarweni, VW (2021). Methodology Study Business and Economics. New Library Press. Sukmadinata, NS (2016). Educational Research Methods. Teen PT Rosda Work.

Syamsuddin, L. (2016). Management Corporate Finance. PT. King Grafindo Homeland.

Vijayakumaran, R. (2020). Impact of managerial ownership on investment and liquidity constraints: Evidence from Chinese listed companies. Research in International Business and Finance, 55. https://doi.org/10.1016/j.ribaf