The Eleventh International Conference on Entrepreneurship and

Business Management

The Effect of Short-Term Debt, Long-Term Debt, Tangibility,

Sales Growth, Firm Size, and Debt to Asset Ratio on The
Performance of Manufacturing Companies

24th November 2022, Bali, Indonesia

Co Host: Sponsored By:

INTRODUCTION

COVID-19 Profit Decline Salary reduction and

dismissal of workers

Capital Product innovation Declining purchasing

power
LITERATURE REVIEW -
THEORIES

Pecking Order Theory Trade Off Theory

HYPOTHESIS DEVELOPMENT

Long Term Debt

Neg
a tive
Short Term Debt
Negative

Negative
Tangibility Firm
Performance
Positive
Sales Growth
Negative

Firm Term
Short Size Debt ti ve
g a
Ne

Debt to Asset Ratio

RESEARCH METHODS
POPULATIONS – The Criteria used :
1. Companies that present financial statements for 2019
– 2021
2. Companies that present financial statements in rupiah
currency
Based on the above criteria, 234 data were obtained to be
processed in this study

DATA COLLECTION TECHINIQUE :

Data obtained from manufacturing companies listed on the
Indonesia Stock Exchanger for the 2019-2021 period. The
data collected is processed using EViews 12 SV software.
VARIABLE OPERATIONS
RESULT AND DISCUSSION
INDEPENDENT COEFFICIENT PROBABILITY RESULT EXPLANATION
VARIABLE
SHORT TERM -0,0432 0,4017 H1 REJECTED Short Term Debt have no negative
DEBT influence on Firm Performance
LONG TERM -0,0851 0,0507 H2 REJECTED Long Term Debt have no negative
DEBT influence on Firm Performance
TANGIBILITY -0,0667 0,0009 H3 REJECTED Tangibility have negative influence
on Firm Performance
SALES 0,0542 0,0000 H4 ACCEPTED Sales Growth have Positive influence
GROWTH on Firm Performance
FIRM SIZE -0,0109 0,0473 H5 ACCEPTED Firm Size have a negative influence
on Firm Performance
DEBT TO ASSET -0,0108 0,7998 H6 REJECTED Debt to Asset Ratio have no negative
RATIO influence on Firm Performance

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Co Host: Sponsored By: