Component Industry Listed In Indonesia Stock Exchange For The Year 2010-2014
By :
Fadjrin Bayu Pradityo 1-3411-093
BACHELOR’S DEGREE
in
ACCOUNTING
BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
Revision after the Thesis Defense on 11 January 2016
Fadjrin Bayu
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Fadjrin Bayu Pradityo
Student Date
Approved by :
Indra Pratama, MM, Ak, CA, CMA, CPMA
Thesis Advisor Date
Eric Jos Nasution, MBA, MA, PhD
Dean Date
Fadjrin Bayu ABSTRACT
The Analysis of Factors Affecting
The Selection of Accounting Inventory Method In Automotive And Component Industry Listed In Indonesia Stock Exchange
For The Year 2010-2014
by
Fadjrin Bayu Pradityo
Indra Pratama MM, Ak., CA, CMA, CPMA Thesis Advisor
SWISS GERMAN UNIVERSITY Bumi Serpong Damai
This study investigates the correlation of the accounting information: company size, variability of inventory, intensity of inventory, variability of cogs, variability of accounting earnings, gross profit margin, financial leverage, and liquidity towards accounting inventory method. This is to respond the economic condition and improvement of automotive market towards the global economy, and the increasing consumer spending in automotive sector in Indonesia. Some previous studies found that there is a correlation between the variables and the accounting inventory method.
This research then reveals a positive significant correlation of accounting inventory method company size, gross profit margin, variability of accounting earning, and liquidity towards accounting inventory method. However, variable financial leverage, intensity of inventory, variability of COGS, and variability of inventory have a negative significant correlation.
Keywords:company size, variability of inventory, intensity of inventory, variability of cogs, variability of accounting earnings, gross profit margin, financial leverage, and liquidity
Fadjrin Bayu
© Copyright 2016 by Fadjrin Bayu Pradityo
All rights reserved
Fadjrin Bayu
DEDICATION
I dedicate this thesis work to my parents, my family, my bestfriends, Mr. Indra Pratama MM, Ak., CA, CMA, CPMA as my thesis advisor and another person who always support me.
Fadjrin Bayu
ACKNOWLEDGEMENT
An endless gratitude and thanks to my beloved Allah who has always been my loyal Guardian during the process of completing this thesis work,
My family for never-ending support
To Mr. Indra Pratama MM, Ak., CA, CMA, CPMA an extraordinary person, a genius,
"crazy" and rock & roll that is able to make my spirit and motivated to complete my masterpiece and has provided a home, food, and guidance
To Martabak Borneo which always accompany the guidance of thesis
The "THESIS FC" Adil Rachman & Fadhel Ghoffur although late to graduate but insha allah we could finish well
to all of my accounting mates for painting my days with laughters and all the stories during the 4-year period in Swiss German University
Fadjrin Bayu TABLE OF CONTENT
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENT ... 6
LIST OF FIGURE ... 10
LIST OF TABLE ... 11
LIST OF FORMULA ... 13
CHAPTER 1 ... 14
INTRODUCTION... 14
1.1 Background ... 14
1.2 Research Problem ... 18
1.3 Research Objectives ... 18
1.4 Research Questions ... 19
1.5 Significance of Study ... 19
1.6 Scope and Limitation ... 20
1.7 Thesis Structure ... 20
CHAPTER 2 ... 22
LITERATURE REVIEW ... 22
2.1 General Theories ... 22
2.1.1 Cost Flow Assumption ... 22
2.1.2 Financial Statements ... 25
2.1.3 Company Size ... 26
2.1.4 Variability of Inventory ... 27
2.1.5 Intensity of Inventory ... 28
2.1.6 Gross Profit Margin ... 29
2.1.7 Variability in Accounting Earnings ... 29
2.1.8 Variability in COGS ... 30
2.1.9 Financial Leverage ... 31
2.1.10 Liquidity ... 32
2.1.11 Component Automotive Industry ... 32
Fadjrin Bayu
2.2 Summary of Previous Studies ... 33
2.2.1 Table of previous studies ... 34
2.3 Theoritical framework ... 39
CHAPTER 3 ... 40
METHODOLOGY ... 40
3.1 Population and Sampling ... 40
3.2 Data Sources and Collection ... 41
3.3 Research Model ... 42
3.4 Method of Data Analysis... 43
3.4.1 Multiple Regression Analysis ... 43
3.4.2 T-test ... 43
3.4.3 Coefficient of Determination Test ... 43
3.4.4 Classical Assumption Tests ... 43
3.5 Hypotheses ... 44
CHAPTER 4 ... 46
RESULT AND DISCUSSION ... 46
4.1 Statistical Descriptive ... 46
4.1.1 Company Profile ... 46
4.2 Classical Assumption Test ... 49
4.2.1 Validity And Reliability Test ... 49
4.2.2 Normality Test ... 51
4.2.3 Multicollinearity Test... 52
4.2.4 Heterocedasticity Test ... 53
4.2.5 Outliers Test ... 54
4.3 Hypothesis Testing ... 55
4.4 Multiple Regressions ... 95
4.5 Descriptive Test... 99
CHAPTER 5 ... 101
CONCLUSION AND RECOMMENDATION ... 101
5.1 Conclusion ... 101
5.2 Recommendation ... 102
GLOSSARY ... 103
Fadjrin Bayu
REFERENCES ... 105
APPENDICES ... 109
APPENDIX B ... 122
Curriculum Vitae ... 123
