THE EFFECT OF PROPPING ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN INDONESIA

Supatmi Supatmi; Steppani Steppani

doi:10.20473/baki.v6i2.25839

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Supatmi Supatmi
Supatmi.supatmi@uksw.edu
Satya Wacana Christian University
Steppani Steppani Satya Wacana Christian University https://orcid.org/0000-0003-0917-0893

Vol. 6 No. 2 (2021): Berkala Akuntansi dan Keuangan Indonesia

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September 6, 2021

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This study aims to find empirical evidence of the impact of propping- related party transactions on company performance. The research sample was manufacturing companies listed on the IDX during 2017-2019 which were determined by purposive sampling and using the Generalized Least Square panel data regression analysis technique (cross-section weights). The results showed that propping (related party transactions related to account payables) had a positive effect on financial performance and had a negative effect on the company's market performance. Propping (related party transactions related to other payables) had a positive effect on the company's financial performance but doesn't an affect on the company's market performance. Meanwhile, propping (related party transactions related to liabilities other than account payables) had a negative effect on financial performance but had a positive effect on the company's market performance.

Supatmi, S., & Steppani, S. (2021). THE EFFECT OF PROPPING ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN INDONESIA. Berkala Akuntansi Dan Keuangan Indonesia, 6(2), 146–165. https://doi.org/10.20473/baki.v6i2.25839

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