Analysis of Factors that Influence Company Performance with Competitive Strategies as Moderating Variables in Companies in the Jakarta Islamic Index Listed on the Indonesia Stock Exchange
Introduction
The Jakarta Islamic Index (JII) is a stock market index that tracks the performance of companies listed on the Indonesia Stock Exchange (IDX) that meet certain Shariah criteria. The JII is designed to provide investors with a benchmark for evaluating the performance of companies that operate in accordance with Islamic principles. However, the factors that influence company performance in the JII are not well understood, and there is a need for research that examines the role of competitive strategies as moderating variables in companies listed in the JII.
Research Objectives
This study aims to reveal and analyze the factors that influence company performance, as well as examine the role of competitive strategies as moderating variables in companies listed in the JII during the 2013 to 2015 period. The specific objectives of this study are:
To identify the factors that influence company performance in the JII.
To examine the role of competitive strategies as moderating variables in the relationship between these factors and company performance.
To provide insights into the implications of the findings for company management, investors, and capital market regulators.
Methodology
This study uses the causality method with a population of 30 companies registered in the JII. The entire company became a research sample, chosen by census technique, thus producing 90 observational samples to be analyzed. Data were analyzed using multiple linear regression analysis and residual tests to test moderating variables.
Results
The results of this study showed that intellectual capital, company size, and company growth simultaneously had a significant influence on company performance listed in the JII. Partially, only intellectual capital has a positive and significant influence on company performance, while company size and company growth do not show significant effects.
Residual test results show that competitive strategies do not moderate the relationship between intellectual capital, company size, and company growth with company performance. In other words, competitive strategies do not play a role in modifying the effect of these factors on company performance.
Discussion
The findings of this study have several implications for stakeholders. For company management, the results of this study show the importance of investment in intellectual capital to improve company performance. Intellectual capital refers to the knowledge, skills, and expertise of employees, as well as the information systems and technology used by the company. Investment in intellectual capital can be achieved through various means, such as training and development programs, recruitment and retention of skilled employees, and the implementation of effective information systems.
For investors, this research can be a reference in choosing companies that have good performance based on the factors that have been studied. Investors can use the findings of this study to evaluate the performance of companies listed in the JII and make informed investment decisions.
For capital market regulators, this research can be an input in developing policies that support the development of company performance at the JII. Regulators can use the findings of this study to design policies that promote the development of intellectual capital, company size, and company growth, and to monitor the performance of companies listed in the JII.
Conclusion
In conclusion, this study has provided insights into the factors that influence company performance in the JII, as well as the role of competitive strategies as moderating variables in the relationship between these factors and company performance. The findings of this study have several implications for stakeholders, including company management, investors, and capital market regulators.
Recommendations
Based on the findings of this study, the following recommendations are made:
Company management should invest in intellectual capital to improve company performance.
Investors should use the findings of this study to evaluate the performance of companies listed in the JII and make informed investment decisions.
Capital market regulators should design policies that promote the development of intellectual capital, company size, and company growth, and to monitor the performance of companies listed in the JII.
Limitations
This study has several limitations that should be noted. Firstly, the study only examines the effect of certain factors on company performance at the JII. Other factors that are not examined in this study, such as financial risks, corporate governance, and macroeconomic conditions, may also have an influence on company performance.
Secondly, the study only uses data from the 2013 to 2015 period, which may not be representative of the current market conditions. Future studies should use more recent data to provide a more accurate picture of the factors that influence company performance in the JII.
Future Research Directions
Future research should build on the findings of this study by examining the role of other factors that influence company performance in the JII. Some potential areas of research include:
The impact of financial risks on company performance in the JII.
The role of corporate governance in influencing company performance in the JII.
The effect of macroeconomic conditions on company performance in the JII.
By examining these factors, future research can provide a more comprehensive understanding of the factors that influence company performance in the JII and inform the development of policies that support the development of company performance at the JII.Q&A: Analysis of Factors that Influence Company Performance with Competitive Strategies as Moderating Variables in Companies in the Jakarta Islamic Index Listed on the Indonesia Stock Exchange
Q: What is the Jakarta Islamic Index (JII) and how does it differ from other stock market indices?
A: The Jakarta Islamic Index (JII) is a stock market index that tracks the performance of companies listed on the Indonesia Stock Exchange (IDX) that meet certain Shariah criteria. The JII is designed to provide investors with a benchmark for evaluating the performance of companies that operate in accordance with Islamic principles. Unlike other stock market indices, the JII excludes companies that engage in activities that are prohibited under Shariah law, such as those involved in the production or sale of pork, alcohol, or other haram products.
Q: What are the factors that influence company performance in the JII?
A: The study found that intellectual capital, company size, and company growth simultaneously had a significant influence on company performance listed in the JII. Intellectual capital refers to the knowledge, skills, and expertise of employees, as well as the information systems and technology used by the company. Company size and company growth are also important factors that influence company performance.
Q: What is the role of competitive strategies in influencing company performance in the JII?
A: The study found that competitive strategies do not moderate the relationship between intellectual capital, company size, and company growth with company performance. In other words, competitive strategies do not play a role in modifying the effect of these factors on company performance.
Q: What are the implications of the study's findings for company management?
A: The study's findings suggest that company management should invest in intellectual capital to improve company performance. This can be achieved through various means, such as training and development programs, recruitment and retention of skilled employees, and the implementation of effective information systems.
Q: What are the implications of the study's findings for investors?
A: The study's findings suggest that investors should use the findings of this study to evaluate the performance of companies listed in the JII and make informed investment decisions. Investors can use the study's findings to identify companies that have good performance based on the factors that have been studied.
Q: What are the implications of the study's findings for capital market regulators?
A: The study's findings suggest that capital market regulators should design policies that promote the development of intellectual capital, company size, and company growth, and to monitor the performance of companies listed in the JII. Regulators can use the study's findings to inform the development of policies that support the development of company performance at the JII.
Q: What are the limitations of the study?
A: The study has several limitations that should be noted. Firstly, the study only examines the effect of certain factors on company performance at the JII. Other factors that are not examined in this study, such as financial risks, corporate governance, and macroeconomic conditions, may also have an influence on company performance. Secondly, the study only uses data from the 2013 to 2015 period, which may not be representative of the current market conditions.
Q: What are the future research directions?
A: Future research should build on the findings of this study by examining the role of other factors that influence company performance in the JII. Some potential areas of research include:
The impact of financial risks on company performance in the JII.
The role of corporate governance in influencing company performance in the JII.
The effect of macroeconomic conditions on company performance in the JII.
By examining these factors, future research can provide a more comprehensive understanding of the factors that influence company performance in the JII and inform the development of policies that support the development of company performance at the JII.