Open AccessTHE EFFECT OF PROPPING ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN INDONESIA
Author(s) -
Supatmi Supatmi,
Steppani Steppani
Publication year - 2021
Publication title -
baki (berkala akuntansi dan keuangan indonesia)
Language(s) - English
Resource type - Journals
eISSN - 2460-4496
pISSN - 2459-9581
DOI - 10.20473/baki.v6i2.25839
Subject(s) - accounts payable , business , panel data , accounting , nonprobability sampling , sample (material) , manufacturing , ordinary least squares , finance , economics , marketing , econometrics , population , chemistry , demography , chromatography , sociology , payment
This study aims to find empirical evidence of the impact of propping- related party transactions on company performance. The research sample was manufacturing companies listed on the IDX during 2017-2019 which were determined by purposive sampling and using the Generalized Least Square panel data regression analysis technique (cross-section weights). The results showed that propping (related party transactions related to account payables) had a positive effect on financial performance and had a negative effect on the company's market performance. Propping (related party transactions related to other payables) had a positive effect on the company's financial performance but doesn’t an affect on the company's market performance. Meanwhile, propping (related party transactions related to liabilities other than account payables) had a negative effect on financial performance but had a positive effect on the company's market performance.