International Business Management

Year: 2017
Volume: 11
Issue: 12
Page No. 2151 - 2159

The Determinants of Chemical Company’s Growth Registered in Indonesia Stock Exchange

Authors : Musolih and Augustina Kurniasih

Abstract: The growth of Indonesia’s chemical industry experienced a slowdown in Q1 2016, potentially disrupting the growth of other industries. This study aims to investigate the factors of kurs fluctuations, capital structure asset turnover and profitability to corporate growth. The research sample consisted of 8 chemical companies listed on IDX period 2010-2015. Panel data regression with Eviews 9 Software is used for data processing. The results showed that the variable kurs fluctuations, capital structure and asset turnover have a significant influence on the variable growth of the company. The results also show that the variable profitability of the company does not have a significant effect on the variable growth of the company. Independent variables simultaneously have a significant effect on growth variables. Therefore, the Indonesian chemical industry companies need to increase the ratio of total assets turnover by increasing net sales and minimizing total assets, hedge the domestic kurs against the value of foreign exchange which used for raw material procurement operations, add up to the optimum level of funding that comes from debt.

How to cite this article:

Musolih and Augustina Kurniasih, 2017. The Determinants of Chemical Company’s Growth Registered in Indonesia Stock Exchange. International Business Management, 11: 2151-2159.

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