Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)

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The Influence of Asset Management on Financial Performance, with Panel Data Analysis

Authors
Jan Horas Veryady Purba, Denny Bimantara
Corresponding Author
Jan Horas Veryady Purba
Available Online 25 May 2020.
DOI
10.2991/aebmr.k.200522.031How to use a DOI?
Keywords
panel data regression, fixed effect model, assest management, profitability
Abstract

One of the main concerns of the company is the effort to achieve the desired level of profit. That goal can be achieved through good asset management. Good asset management reflects that the company is able to control its financial performance efficiently and effectively. The purpose of this study is to determine the effect of asset management on financial performance. The approach taken to measure asset management is Fixed Asset Turn Over (FATO), while financial performance is measured by profitability using Return on Assets (ROA). This research model looks simple and uses only one independent variable. The selection of the best model is done after testing several other variables, and the more relevant variable to explain the diversity of ROA dependent variables is FATO. This study uses panel data analysis, which consists of six companies in the period 2013-2017. The analytical method used is Panel Data Regression Analysis. Based on the results of hypothesis testing, it is found that the independent variable FATO has a positive and significant effect on ROA. This means that asset management is needed to improve the profitability of the company.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
25 May 2020
ISBN
978-94-6252-973-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.200522.031How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Jan Horas Veryady Purba
AU  - Denny Bimantara
PY  - 2020
DA  - 2020/05/25
TI  - The Influence of Asset Management on Financial Performance, with Panel Data Analysis
BT  - Proceedings of the 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019)
PB  - Atlantis Press
SP  - 150
EP  - 155
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200522.031
DO  - 10.2991/aebmr.k.200522.031
ID  - Purba2020
ER  -