Application of Target Costing and Performance Analysis: Evidence from Indian Automobile Industry

2021 ◽  
Author(s):  
NARSAIAH NERALLA ◽  
Keyword(s):  
Firm Size ◽  
Negative Relationship ◽  
Manufacturing Companies ◽  
Target Costing ◽  
Target Price ◽  
Product Price ◽  
Convenience Sample ◽  
Positive Correlation ◽  
Application Procedure ◽  
Return On Sales

The manufacturing companies must keep attention over challenges and for the moment of adopting technology and practices instead of observation of competition amongst competitor companies. To create automobile business successful in India, companies are essential to adopting better cost accounting techniques to minimize costs. Target Costing has been identified as a popular technique to accomplish company’s goals. Target costing consist exclusive approach to decide target price for the product and services. Target Costing ensure that new product price would be competitive in the market with substantial quality of products. This research investigates the application procedure of Target Costing (TC) in Automobile companies in India. This study employed Target Costing as a dependent variable and Profitability; Growth; Net Tangibility Assets (NTA); EPS and Firm Size as independent variables. The study adopted convenience sample of top ten automobile companies listed on BSE of India and panel data has covered from 2014-15 to 2018-19 financial years. The results determine the target costing impact on profitability had reported by Pearson’s correlation result shown a negative relationship. Target costing impact on Return on sales examined by simple regression analysis and revealed that there is positive correlation. Finally, Target costing impact on financial performance examined by multiple regression results revealed that there is positive correlation with Revenue from Operation; Profitability; Return on Sales (ROS) and Growth, while negative correlation revealed by Margin from Operation; ROA; Net Tangibility Assets(NTA); EPS and Firm Size.

scholarly journals AUDIT COMMITTEE, FINANCIAL CONDITION, AND FIRM PERFORMANCE: EMPIRICAL EVIDENCE FROM INDONESIA

2020 ◽  
Vol 1 (2) ◽  
pp. 253-261
Author(s):  
Ekawati Jati Wibawaningsih ◽  
Lidya Primta Surbakti
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Negative Relationship ◽  
Manufacturing Companies ◽  
Policy Makers ◽  
Market Participants ◽  
Financial Condition

This study has examined the characteristics of the audit committee (size, independence, and expertise) in addition to financial Condition (leverage and firm size) in increasing firm performance. The random effect with panel data regression was applied on 309 firm-year observations of the manufacturing companies listed in the Indonesian Stock Exchange (IDX) for the period of 2016 - 2018. Return on Assets was used as the measurement of firm performance. This study’s results show a significant and positive relationship between firm size with performance and a significant negative relationship between leverage and firm performance. However, the findings show no significant relationship between the characteristics of the audit committee and firm performance. The results of this study have implications for investors, regulators, and market participants. Policy makers might use these findings, especially regarding the characteristics of the audit committee and financial conditions, for improving the performance of the companies in Indonesia

scholarly journals Target Costing: Adoption and its Relationships with Competition Intensity, Intended Strategy and Firm Size

2019 ◽  
Vol 14 (3) ◽  
pp. 223-250
Author(s):  
Helmi Hammami ◽  
◽  
Mohammed Al-Omiri ◽  
Taoufik Bouraoui ◽  
A. A. Ousama ◽  
...  
Keyword(s):  
Saudi Arabia ◽  
Firm Size ◽  
Developing Economies ◽  
Manufacturing Companies ◽  
Target Costing ◽  
Competition Intensity ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

The paper aims to examine the level of the adoption of the target costing (TC) system by Saudi manufacturing companies and its relationships with competition intensity, intended strategy and firm size. The paper used a questionnaire survey to measure the adoption of TC and the effect of competition intensity and intended strategy on this adoption. Descriptive statistic and regression analysis were preformed to analyse the data and obtain the results. This study found that Saudi manufacturing companies were interested to adopt the TC system. In addition, it found that the competition intensity positively affects TC adoption. Moreover, the study found that companies that used a differentiation strategy were more inclined to adopt the TC than those that used a cost leadership strategy. Finally, it found that large manufacturing companies tend to adopt TC more than small ones. This is among the pioneer studies to study the TC system in Saudi Arabia, introducing a new area of investigation. Moreover, the study contributes to managerial accounting research in developing economies by providing new insights into the underexplored Saudi Arabia market. The findings of this paper could elucidate the importance of adoption of TC as a technique with a potential to support the economic growth of the country. Keywords: target costing, competitive environment, cost leadership strategy, differentiation strategy, emerging markets, Saudi Arabia

Analysis of Factors Affecting Capital Structure in Food and Beverage Manufacturing Company

2018 ◽  
Vol 1 (2) ◽  
pp. 1-14
Author(s):  
Nur Hajja Aini ◽  
St Habibah
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Significant Influence ◽  
Fixed Effects ◽  
Random Effect Model ◽  
Manufacturing Companies ◽  
Business Risk ◽  
Growth Opportunities ◽  
Food And Beverage ◽  
The Capital Structure

The purpose of this research to analyze the influence of firm size, liquidity, growth opportunities, tangibility asset, and business risk to the capital structure of listed food and beverage manufacturing companies in Indonesia and Vietnam Stock Exchange from 2010 to 2016. The result shows that the fixed effects model should be appropriate for this study as compared to the random effect model. Capital structure significantly differences between the two countries. Firm size has a positive but insignificant influence on the capital structure in Indonesia, whereas it has a positive and a significant influence on the capital structure in Vietnam. Liquidity has a negative and significant influence on the capital structure both in Indonesia and Vietnam. Growth opportunities have a negative but insignificant influence on the capital structure both in Indonesia and Vietnam. Asset tangibility has a positive but insignificant influence on the capital structure in Indonesia, but it has the negative but insignificant influence on the capital structure in Vietnam. Ultimately, the business risk has a negative and significant influence on the capital structure in Indonesia but has a positive and insignificant influence on the capital structure in Vietnam.

The Influence of Capital Structure, Growth, Company Size to Profitability and Company Value of Manufacture Firms Listed in Indonesia Stock Exchange

2019 ◽  
Vol 1 (3) ◽  
pp. 66-78
Author(s):  
Bernon Sampe Tondok ◽  
Cepi Pahlevi ◽  
Andi Aswan
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Positive Impact ◽  
Stock Exchange ◽  
Company Size ◽  
Manufacturing Companies ◽  
Descriptive Research ◽  
Company Value ◽  
Quantitative Descriptive ◽  
Company Growth

This study examines the effect of capital structure, company growth, company size on profitability and company value the cases of manufacturing companies listed on the Indonesia Stock Exchange. This research is quantitative descriptive research using path analysis. Classical assumption evaluations are conducted comprising of normality, linearity, autocorrelation, multicollinearity, and heteroscedasticity test. The sample is 33 manufacturing companies listed on the Indonesia Stock Exchange from period 2013 – 2017. The results of the study found that there was a positive impact of capital structure, company growth, firm size on profitability and value of manufacturing companies.

STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING. (STUDI KASUS PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BEI PERIODE 2016-2018).

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Anindiya Mustika Gunarwati ◽  
Siti Maryam ◽  
Sudarwati Sudarwati
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Company Size ◽  
Manufacturing Companies ◽  
Descriptive Research ◽  
Company Value ◽  
Quantitative Descriptive

The purpose of this study was to determine the effect of Capital Structure and Firm Size on Firm Value with Profitability as Intervening Variables. (Case Study on Manufacturing Companies in the Consumer Goods Industry Sector which are listed on the Indonesia Stock Exchange for the 2016-2018 Period). This research uses quantitative descriptive research type. Sample 27 companies using Purposive sampling technique. The analysis method uses path analysis with SPSS software version 21.Based on the test result min this study that the variable capital structure and company size have a positive and significant effect on profitability. Capital structure has no effect on firm value, firm size and profitability affect company value, and profitability is able to mediate the effect of capital structure and firm size on firm value. Keywords: capital structure, company size, profitability and firm value.

FAKTOR DETERMINAN PEMBENTUK STRUKTUR MODAL PADA PERUSAHAAN SEKTOR FARMASI PERIODE 2012 - 2016

2017 ◽  
Vol 2 ◽  
pp. 241-250
Author(s):  
Neng Ria Kanita ◽  
Hendryadi Hendryadi
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Pharmaceutical Manufacturing ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Panel Data Regression ◽  
Data Regression ◽  
Partial Effects

This study aims to examine the simultaneous and partial effects of profitability, liquidity, and firm size on capital structure. The sample is 10 pharmaceutical manufacturing companies listed in Indonesia Stock Exchange period 2012-2016, using purposive sampling. The technique of analysis used is panel data regression (pooled regression). The results showed that the selected model is the fixed effect. Simultaneously NPM, CR, and Firm Size have a significant effect on capital structure. Partially NPM has a negative and significant effect on capital structure. CR partially have a negative and not significant effect on capital structure. Partially Firm Size have a positive and significant effect on capital structure. Variables that have a significant effect on capital structure are NPM and Firm Size. While CR does not significantly affect the capital structure. Keywords: Capital Structure, Profitability, Liquidity, Firm Size

Pengaruh Ukuran Perusahaan, Leverage, Kebijakan Dividen dan Profitabilitas terhadap Nilai Perusahaan Studi pada Perusahaan Manufaktur Sektor Food And Beverages

2021 ◽  
Vol 4 (3) ◽  
pp. 626-640
Author(s):  
Nur Anisa ◽  
Sri Hermuningsih ◽  
Alfiatul Maulida
Keyword(s):  
Firm Size ◽  
Firm Value ◽  
Quantitative Research ◽  
Sampling Method ◽  
Dividend Policy ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Food And Beverages ◽  
Selection Of

This study aims to examine the effect of firm size, leverage, dividend policy and profitability on firm value in the study of manufacturing companies in the food and beverages sector. This research uses quantitative research. The technique used in sampling is the purposive sampling method, namely the selection of samples is carried out with predetermined criteria. So that as many as 35 data were obtained from 7 food and beverages companies listed on the IDX during the 2016-2020 period. The data analysis method used is multiple linear regression analysis using the SPSS version 23 program. Based on the results of the study, it shows that: (1) firm size has no effect on firm value, (2) leverage has a negative and significant effect on firm value, (3) dividend policy has no effect on firm value, (4) profitability has a positive and significant effect on firm value. Keywords: firm size, leverage, dividend policy and profitability.

The Effect of Profitability, Asset Structure, Company Size on Stock Returns with Corporate Governance as Moderating Variables in Manufacturing Companies on the IDX in 2009-2018

2021 ◽  
Vol 8 (8) ◽  
pp. 55-63
Author(s):  
Deby Yurika Lasmarito Siahaan ◽  
Rina Br Bukit ◽  
Tarmizi .
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Firm Size ◽  
Significant Influence ◽  
Stock Return ◽  
Company Size ◽  
Research Model ◽  
Manufacturing Companies ◽  
Research Results ◽  
Moderating Variables

The research objective was to examine and analyze whether Profitability, Asset Structure, Firm Size simultaneously and partially influenced Stock Returns in Manufacturing Companies. In addition, this study also tries to prove whether Corporate Governance can be used as a moderator in the research model. The research results showed that simultaneously Profitability, Asset Structure, Firm Size significantly influenced Stock Returns. Partially, profitability has a positive and significant influence on Stock Returns. Asset Structure has a positive and significant influence on Stock Returns, and Company size has a positive and insignificant influence on Stock Returns. The variable of Corporate Governance can moderate the influence of Asset Structure on Stock Returns. However, Corporate Governance will not be able to moderate the influence of Profitability on Stock Returns. Keywords: Profitability, Asset Structure, Firm Size, Stock Return, and Corporate Governance.

scholarly journals The Effect of Financial Distress, Firm Size, Leverage and Litigation Risk on The Application of Accounting Conservatism In Manufacturing Companies Listed In Indonesia Stock Exchange

2021 ◽  
Vol 6 (2) ◽  
pp. 100-106
Author(s):  
Ira Septriana ◽  
Hermawan Triyono ◽  
Agung Prajanto
Keyword(s):  
Firm Size ◽  
Financial Distress ◽  
Sampling Method ◽  
Stock Exchange ◽  
Sample Selection ◽  
Accounting Conservatism ◽  
Litigation Risk ◽  
Test Results ◽  
Manufacturing Companies ◽  
Research Criteria

This research aims to analyze the effect of financial distress, firm size, leverage, and litigation risk on implementing the accounting conservatism of manufacturing companies in Indonesia. The population in this research is manufacturing companies listed on the Indonesia Stock Exchanged (IDX) over 2014-2018. Research sample selection used the purposive sampling method. Obtained company data that meet the research criteria as many as 169 companies, so that the total research data is 149 data. The analysis methods in this research are multiple regression analysis. Based on the test results of the research conclude that variables of the board of financial distress, firm size, and litigation risk have no effect on accounting conservatism implemented of manufacturing companies. Meanwhile, the variable of leverage affects the accounting conservatism's implemented by manufacturing companies.  Keywords: Conservatism Accounting. Financial Distress, Firm Size, Leverage, Litigation Risk 

scholarly journals Green CSR Moderated by Public Visibility and Innovation Performance at Indonesia Companies

2020 ◽  
Vol 24 (1) ◽  
pp. 1
Author(s):  
Rahmat Hidayat, Farah Margaretha Leon
Keyword(s):  
Positive Relationship ◽  
Negative Relationship ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Innovation Activities ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship

This study aims to analyze the green CSR  of innovation performance  with firms approval variables  and public visibility   can support moderating the relationship of green CSR  and innovation. The research sample was 33 manufacturing companies. The results showed that the  green CSR has a positive and significant effect on innovation . Also, the company approval variable has been proven to moderate the direction of a positive relationship between green CSR and innovation . The results also prove that public visibility is proven to moderate the direction of the negative relationship between green CSR and performance. This study provide information that shows great concern for the environment; it will increase the company in making changes through innovation activities. Also, the higher the company's approval and public visibility, the company will get support from various stakeholders to run the firms. The level of company concern for CSR activities will be a misjudgment for investors.

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