Testing marketing expenses role on the relation between leverage and performance
Journal Title: Jurnal Keuangan dan Perbankan - Year 2019, Vol 23, Issue 3
Abstract
Marketing expenses usually one of the most important costs for the companies, but still a few research in finance discussing this. The previous study still inconsistent about the role of marketing expenses as a moderator or mediator between the effects of leverage on financial performance. This research intended to empirically test on that subject. This research is using 1792 panel financial report data taken from 256 companies listed in Indonesian Stock Exchange during 2010-2016. There are three main variables in this research: a performance that measures using returns on assets (ROA), marketing expenses are measures using the natural logarithm of marketing expenses. Leverage is calculated using total debt per total asset. Data is analyzed using panel data regression. The results show that marketing expense is a moderator but not a mediator variable in the effect of leverage on financial performance. Marketing expense moderates negatively the relationship between financial leverage on ROA. This is consistent with strategic management using Resources Advantage Theory and Du Pont Business Model.
Authors and Affiliations
Sri Murni Setyawati, Wita Ramadhanti
Keywords
Related Articles
- EP ID EP661720
- DOI 10.26905/jkdp.v23i3.3208
- Views 133
- Downloads 0
FINANCIAL PERFORMANCE, AUDIT DELAY AND FIRM VALUES BANKING IN INDONESIA
Fraud cases in the capital market concerning financial report delay were the main issues of the research. The aim of this research was to investigate the effect of financial performance, audit delay, and firm value. The...
The role of earnings and tax on dividend policy of Indonesian listed firms
Prior studies show that profitability is the main financial aspect that determines a firm’s dividend policy. To add to the Indonesian’ dividends literature, this study examines the role of earnings and tax as dividend po...
ANGELS Rating System for Islamic Banking Industry in Indonesia
This study aims to analyze the bank soundness assessment using ANGELS approach in an Islamic bank. This research is a qualitative research. This research uses a non-interactive qualitative approach that is an analysis r...
Theory of planned behavior and whistleblowing intention
This research examined the theory of planned behavior (TPB) as predictor whistleblowing intention. According to TPB, it is difficult to posit whistleblowing as actual behavior. Whistleblowing is more suited to be posited...
Shift in the Funding Theory Paradigm: From Newtonian-Positivistic to Critical-Phenomenology
Theories about funding have developed rapidly, it was starting from the traditional-rational theory to the behavior-based funding theory, which responds to the gap between the reality and financial theories. The theoreti...