Capital Structure, Asset Efficiency, and Firm Performance: The Moderating Role of Transfer Pricing in Indonesian Consumer Sector Firms (Equivalent Jurnal Ilmiah Sosial Teknik)

Summary

• The balanced panel covers 160 Indonesian consumer cyclical and non-cyclical firms in 2023–2024 (320 firm-year observations).p.1
• In pooled estimates, asset turnover (TATO) is positive (β = 0.0379) while the debt-to-asset ratio is not significant (β = 0.0012; p = .8701).p.1
• The TATO interaction with foreign related-party sales is positive (β = 0.0761; p = .0027).p.1
• Mean ROA is 0.0513, mean DAR is 0.4450 and mean TATO is 1.0051.p.5
• Under fixed effects, DAR becomes positive (0.0774, p = .0092), so the leverage result depends on the specification.p.6
• The TATO interaction is negative and not significant under fixed effects (−0.0349, p = .7191).p.6
• The reported R² is 0.4500 and the F-statistic is 36.4719.p.8

Key insights

1. Mean foreign related-party sales relative to equity is 0.2410, which does not quantify pricing aggressiveness.p.5
2. Results for asset efficiency and its interaction with related-party sales are sensitive to the estimator, and the leverage interaction is not significant in any specification.p.6
3. The Breusch–Godfrey test indicates possible residual dependence (p = 0.0216), so the statistical findings are not yet confirmatory.p.7
4. The sample window straddles PMK 172/2023, effective from 29 December 2023, and cannot establish a post-regulation effect.p.3
5. The R² describes in-sample fit and is not a causal attribution of profitability to the regressors.p.8
6. Asset efficiency is the most consistently significant predictor among the 160 consumer-sector firms studied in 2023–2024.p.10