Surging or Stalling? Uncovering Strategic Factors Behind Healthcare Company Growth in Indonesia
Abstract
This study aims to analyze the influence of R&D expenditure, company size, operating cash flow, leverage, and sales growth on the future performance of healthcare sector companies listed on the Indonesia Stock Exchange (IDX) during the 2018–2023 period. A total of 11 companies were selected as samples using a purposive sampling method, resulting in 66 observations over the six-year period. Panel data regression analysis was employed, and the findings indicate that R&D expenditure, company size, and operating cash flow have no significant effect on future performance. In contrast, leverage has a significant negative effect, while sales growth has a significant positive effect on the future performance of healthcare companies.
Keywords
Full Text:
PDFReferences
Abughniem, M. S., Al-Aishat, M. A. H., & Hamdan, A. (2020). Free Cash Flow And Firm Performance: Empirical Evidence From The Amman Stock Exchange. International Journal Of Innovation, Creativity And Change. Www.Ijicc.Net, 10. Www.Ijicc.Net
Ahmed, A. M., Nugraha, D. P., & Hágen, I. (2023). The Relationship Between Capital Structure And Firm Performance: The Moderating Role Of Agency Cost. Risks, 11(6), 102. Https://Doi.Org/10.3390/Risks11060102
Alam, A., Uddin, M., Yazdifar, H., Shafique, S., & Lartey, T. (2020). R&D Investment, Firm Performance And Moderating Role Of System And Safeguard: Evidence From Emerging Markets. Journal Of Business Research, 106, 94–105. Https://Doi.Org/10.1016/J.Jbusres.2019.09.018
Arhinful, R., & Radmehr, M. (2023). The Effect Of Financial Leverage On Financial Performance: Evidence From Non-Financial Institutions Listed On The Tokyo Stock Market. Journal Of Capital Markets Studies, 7(1), 53–71. Https://Doi.Org/10.1108/Jcms-10-2022-0038
Badan Pusat Statistik. (2024, February 23). Laju Pertumbuhan Produk Domestik Bruto Atas Dasar Harga Konstan 2010 Menurut Lapangan Usaha** (Persen), 2023. Https://Www.Bps.Go.Id/Id/Statistics-Table/3/Yurkcwvfyzrnvepst1dsyvjxrk9rmve0vuu1vvfumdkjmw==/Laju-Pertumbuhan-Produk-Domestik-Bruto-Atas-Dasar-Harga-Konstan-2010-Menurut-Lapangan-Usaha--Persen---2022.Html?Year=2023.
Brigham, E. F. ., & Houston, J. F. . (2007). Fundamentals Of Financial Management. Thomson/South-Western.
Brown, T. C., O’kane, P., Mazumdar, B., & Mccracken, M. (2019). Performance Management: A Scoping Review Of The Literature And An Agenda For Future Research. Human Resource Development Review, 18(1), 47–82. Https://Doi.Org/10.1177/1534484318798533
Cardilla, A. L., Muslih, M., & Rahadi, D. R. (2019). Pengaruh Arus Kas Operasi, Umur Perusahaan, Dan Ukuran Perusahaan Terhadap Kinerja Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2011-2016. Firm Journal Of Management Studies, 4(1), 66. Https://Doi.Org/10.33021/Firm.V4i1.686
Chen, Z., Harford, J., & Kamara, A. (2019). Operating Leverage, Profitability, And Capital Structure. Journal Of Financial And Quantitative Analysis, 54(1), 369–392. Https://Doi.Org/10.1017/S0022109018000595
Fedyk, T., & Khimich, N. (2018). R&D Investment Decisions Of Ipo Firms And Long-Term Future Performance. Review Of Accounting And Finance, 17(1), 78–108. Https://Doi.Org/10.1108/Raf-09-2016-0147
Grabińska, B., & Grabiński, K. (2017). The Impact Of R&D Expenditures On Earnings Management. Argumenta Oeconomica Cracoviensia, 17, 53–72. Https://Doi.Org/10.15678/Aoc.2017.1704
Guo, B., Wang, J., & Wei, S. X. (2018). R&D Spending, Strategic Position And Firm Performance. Frontiers Of Business Research In China, 12(1). Https://Doi.Org/10.1186/S11782-018-0037-7
Gusmiarni, & Purwanti. (2023). Pengaruh Likuiditas, Leverage, Dan Perputaran Aset Terhadap Kinerja Masa Depan. Journal Intelektual, 2(2), 191–204. Https://Doi.Org/10.61635/Jin.V2i2.160
Huang, Z. (2020). Empirical Study On The Relationship Between R&D Expenditure And Financial Performance Of Healthcare Industry. Proceedings Of The 2020 4th International Conference On Management Engineering, Software Engineering And Service Sciences, 118–122. Https://Doi.Org/10.1145/3380625.3380656
Kotler, Philip., Keller, K. Lane., Tan, C. Tiong., Ang, S. Hoon., & Leong, S. Meng. (2018). Marketing Management : An Asian Perspective. Pearson Education Limited.
Kraus, A., & Litzenberger, R. H. (1973). A State‐Preference Model Of Optimal Financial Leverage. The Journal Of Finance, 28(4), 911–922. Https://Doi.Org/10.1111/J.1540-6261.1973.Tb01415.X
Kurniawati, H., Rasyid, R., & Setiawan, F. A. (2020). Pengaruh Intellectual Capital Dan Ukuran Perusahaan Terhadap Kinerja Keuangan Perusahaan. Jurnal Muara Ilmu Ekonomi Dan Bisnis, 4(1), 64. Https://Doi.Org/10.24912/Jmieb.V4i1.7497
Lee, M., & Choi, M. (2015). Analysis On Time-Lag Effect Of Research And Development Investment In The Pharmaceutical Industry In Korea. Osong Public Health And Research Perspectives, 6(4), 241–248. Https://Doi.Org/10.1016/J.Phrp.2015.07.001
Liandu, H., Adam, M., Widiyanti, M., & Isnurhadi, I. (2023). Effect Of Operating Cash Flow And Profit Management On Company’s Profitability And Growth. International Journal Of Business, Economics & Management, 6(3), 247–254. Https://Doi.Org/10.21744/Ijbem.V6n3.2170
Machek, O., & Machek, M. (2014). Factors Of Business Growth: A Decomposition Of Sales Growth Into Multiple Factors. Wseas Transactions On Business And Economics . Http://Kpe.Fph.Vse.Cz
Mckinsey & Company. (2020, June 17). Innovation In A Crisis: Why It Is More Critical Than Ever. Https://Www.Mckinsey.Com/Capabilities/Strategy-And-Corporate-Finance/Our-Insights/Innovation-In-A-Crisis-Why-It-Is-More-Critical-Than-Ever.
Myers, S. C. (1984). The Capital Structure Puzzle. The Journal Of Finance, 39(3), 574–592. Https://Doi.Org/10.1111/J.1540-6261.1984.Tb03646.X
Ningsih, D. A., & Wuryani, E. (2021). Kepemilikan Institusional, Leverage Dan Ukuran Perusahaan Terhadap Kinerja Keuangan. Jurnal Akuntansi Unesa, 9(2). Https://Doi.Org/Https://Doi.Org/10.26740/Akunesa.V9n2.P%25p
Partiwi, R., & Herawati, H. (2022). Pengaruh Kepemilikan Institusional, Leverage Dan Ukuran Perusahaan Terhadap Kinerja Perusahaan. Jurnal Kajian Akuntansi Dan Auditing, 17(1), 29–38. Https://Doi.Org/10.37301/Jkaa.V17i1.76
Penrose, E. T. (1959). The Theory Of The Growth Of The Firm. John Wiley.
Pricewaterhousecooper. (2019). The Global Innovation 1000 Study Investigating Trends At The World’s 1000 Largest Corporate R&D Spenders. Https://Www.Strategyand.Pwc.Com/Gx/En/Insights/Innovation1000.Html#Globalkeyfindingstabs4.
Rahman, A., & Sharma, R. B. (2020). Cash Flows And Financial Performance In The Industrial Sector Of Saudi Arabia: With Special Reference To Insurance And Manufacturing Sectors. Investment Management And Financial Innovations, 17(4), 76–84. Https://Doi.Org/10.21511/Imfi.17(4).2020.07
Risna, L. G., Aditya, R., & Putra, K. (2021). Pengaruh Ukuran Perusahaan Dan Leverage Terhadap Kinerja Keuangan Perusahaan Pada Perusahaan Otomotif Dan Komponen Yang Terdaftar Di Bei (Vol. 9, Issue 2). Https://Doi.Org/Https://Doi.Org/10.35145/Procuratio.V9i2.835
Riyanto, B. (2010). Dasar-Dasar Pembelanjaan Perusahaan (4th Ed.). Bpfe Yogyakarta.
Schumpeter, J. A. (1911). The Theory Of Economic Development. Harvard University Press.
Senan, N. A. M., Ahmad, A., Anagreh, S., Tabash, M. I., & Al-Homaidi, E. A. (2021). An Empirical Analysis Of Financial Leverage And Financial Performance: Empirical Evidence From Indian Listed Firms. Investment Management And Financial Innovations, 18(2), 322–334. Https://Doi.Org/10.21511/Imfi.18(2).2021.26
Susanto, I. R., Soewarno, N., & Tjahjadi, B. (2024). Role Of R&D Investment On Future Performance: Evidence From Malaysian Companies. Jurnal Akuntansi Dan Keuangan, 26(1), 29–34. Https://Doi.Org/10.9744/Jak.26.1.29-34
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities And Strategic Management. Strategic Management Journal, 18(509-533 (1997)).
Wandono, A. D., & Asandimitra, N. (2024). Determinants Of Financial Performance In Idx Bumn20 Companies Period 2018-2022 With Dividend Policy And Firm Value As A Moderating Variable. International Journal Of Multicultural And Multireligious Understanding, 11(9). Https://Doi.Org/10.18415/Ijmmu.V11i9.5999
Xu, J., Wang, X., & Liu, F. (2020). Government Subsidies, R&D Investment And Innovation Performance: Analysis From Pharmaceutical Sector In China. Technology Analysis And Strategic Management, 33(5), 535–553. Https://Doi.Org/10.1080/09537325.2020.1830055
Yoo, J., Lee, S., & Park, S. (2019). The Effect Of Firm Life Cycle On The Relationship Between R&D Expenditures And Future Performance, Earnings Uncertainty, And Sustainable Growth. Sustainability (Switzerland), 11(8). Https://Doi.Org/10.3390/Su11082371
Yuliani, E. (2021). Pengaruh Struktur Modal, Likuiditas Dan Pertumbuhan Penjualan Terhadap Kinerja Keuangan. Jurnal Ilmu Manajemen, 10(2), 111. Https://Doi.Org/10.32502/Jimn.V10i2.3108
DOI: http://dx.doi.org/10.18415/ijmmu.v12i9.7008
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 International Journal of Multicultural and Multireligious Understanding
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
https://ijmmu.com
editor@ijmmu.com
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.