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Does Firm Size Matter? An Empirical Study of Firm Performance in Indonesia Prasetyantoko, A.; Parmono, Rachmadi
International Research Journal of Business Studies Vol. 2 No. 2 (2009): August-November 2009
Publisher : Universitas Prasetiya Mulya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21632/

Abstract

This study seeks to understand the relationship between firm size and performance of listed companies in Indonesia during the boom and the bust period. The result shows that generally firm size gives a positive impact to firm profitability. There is significant relationship between firm size and performance during post-crisis period. Firm size is an important factor in recovering process. Nevertheless firm size does not affect the firm market value. By employing panel data analysis of 238 listed companies in Indonesia Stock Exchange (IDX) in the period of 1994–2004, the study shows that institutional factors matter on the firm performance, based on the fact that firm with majority foreign ownership have much higher performance in both measurements, namely, return on asset (ROA) and market capitalization growth.
Membumikan Operasi Perusahaan Besar di Indonesia: Melalui Pola Kemitraan dengan UKM: Sebuah Alternatif Pemikiran Prasetyantoko, A.; Parmono, Rachmadi
International Research Journal of Business Studies Vol. 1 No. 2 (2008): August-November 2008
Publisher : Universitas Prasetiya Mulya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21632/

Abstract

The financial crisis of the 1997 can be considered as an important “wakeup-call” for Indonesian businesses. Before the crisis, business systems were maintained poorly as indicated by widespread of corruption and unfair business practices. Many observers claimed that this kind of business habits became one of important factors that trigger the crisis. Interestingly, unlike big companies related to conglomeration, small and medium enterprises (SMEs) survived during this difficult time. Several factors might be responsible to this phenomenon: flexibility, informality, communality and responsiveness. In post-crisis period, businesses in Indonesia should restructure their systems and behavior by adopting some basic principles of small business while strengthening their corporate governance. Partnership with SMEs is one of the best strategies to do that in this new era.