A RELATIONSHIP MODEL OF MANUFACTURING FIRM PERFORMANCE AND BARRIER TO ENTRY FACTORS (Case Study on Manufacturing Firm in Indonesian Stock Exchange)

• Main Author: HAFIZH (NIM: 23408066), YAFID
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24756
• Institution: Institut Teknologi Bandung

Under perfect competition market, a normal profitability enjoyed by all firm in the market. A super normal profit only achieved if there is a barriers to entry for <br /> <br /> <br /> other firm to compete into the market.. The purpose of this research is to develop a relationship model between barrier to entry factors represented by firm size, <br /> <br /> <br /> firm age, capital intensity, vertical integration and leverage variable to manufacturing firm performance in Indonesia. The research data use a panel data structure meanwhile the method use in this research is a multiple linear regression with consideration of fixed effect and random effect to see an individual effect for each firm sampel. The result is under manufacturing sector <br /> <br /> <br /> sample, barrier to entry factors have a positif relation due to firm performance, whereas the leverage variable have a negatif relation due to firm performance. <br /> <br /> <br /> Moreover the result shows that firm size have a positif relation to performance in firms from consumer goods industry sector whereas in miscellaneous industry <br /> <br /> <br /> sector firm size have a negatif relaton to performance. Leverage have positif relation to performance in firms from miscellaneous industry sector and firms from consumer goods industry sector whereas in basic industry sector leverage have a negatif relation due to firm performance. Capital intensity have a negatif relation due to performance in miscellaneous industry sector and consumer goods industry sector meanwhile in basic industry sector, capital intensity have a positif relation on firm performance. firm age have a positif relation due to firm performance in basic industry sector and in miscellaneous industry sector whereas in consumer goods industry sector firm age have a negatif relation to firm performance. Vertical integration variable have a positif relation due to firm performance in basic industry sector, miscellaneous industry sector and in consumer goods industry sector.