Video Presentasi || SEMINAR PROPOSAL

Summary

This research proposal investigates the impact of liquidity, leverage, and profit margin on the selection of inventory valuation methods for trading companies listed on the Indonesia Stock Exchange between 2018 and 2020. The study examines how these financial factors influence the choice between FIFO (First In, First Out) and weighted average methods for inventory accounting. It also explores the effects of COVID-19 on supply chains and company operations, with a focus on how these factors affect decision-making and company performance. The research combines theoretical frameworks, relevant studies, and statistical analysis to test the proposed hypotheses.

Takeaways

• 😀 The speaker introduces themselves as Apanya Butuh Azucena Riani, a student of S1 Accounting from Prodi, and presents a research proposal on the influence of liquidity, leverage, and net profit margin on the choice of inventory valuation methods in trading companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2020.
• 😀 The research addresses the impact of the COVID-19 pandemic, which started in early 2020, on the economy and supply chains, particularly for trading companies dependent on inventory from China.
• 😀 Inventory is a critical asset for trading companies, and selecting the appropriate accounting method is vital for operational stability. The study focuses on two inventory valuation methods: FIFO (First In, First Out) and Weighted Average.
• 😀 The study investigates how liquidity, leverage, and net profit margin influence the choice of inventory valuation methods, with these variables being essential in decision-making.
• 😀 Liquidity, leverage, and net profit margin are the independent variables in this study, while the dependent variable is the inventory valuation method employed by trading companies.
• 😀 The study identifies a problem stemming from the COVID-19 pandemic, affecting supply chains and influencing companies’ inventory valuation methods. This influences managerial decisions and may impact stakeholders' decisions.
• 😀 The research examines two main theories: Positive Accounting Theory, which predicts consequences of managerial choices, and Agency Theory, which explores the conflicts of interest between principals and agents regarding inventory valuation methods.
• 😀 Previous studies have yielded mixed results. Some studies found that liquidity and net profit margin influence the choice of inventory methods, while others found no significant impact from liquidity or leverage.
• 😀 The research proposes three hypotheses: Liquidity positively influences inventory method choice; Leverage positively influences inventory method choice; and Net profit margin positively influences inventory method choice.
• 😀 The methodology includes a quantitative, associative research design, with purposive sampling selecting 70 trading companies listed on the IDX that published financial reports between 2018-2023 and consistently used either FIFO or Weighted Average for inventory valuation.
• 😀 The research concludes with various statistical methods including descriptive statistics, assumption testing, and hypothesis testing using regression analysis to validate the proposed relationships between the variables and the choice of inventory valuation methods.

Q & A

What is the main focus of the research presented in the transcript?

The main focus of the research is to examine the influence of liquidity, leverage, and net profit margin on the selection of inventory valuation methods in trading companies listed on the Indonesia Stock Exchange from 2018 to 2020.

Why is inventory valuation method selection important for trading companies?

Inventory valuation is crucial for trading companies because it impacts the financial stability, operational efficiency, and overall profitability of the business. Choosing the right method ensures proper inventory management and contributes to accurate financial reporting.

What are the two primary inventory valuation methods discussed in the transcript?

The two primary inventory valuation methods discussed are the FIFO (First In, First Out) method and the Weighted Average method.

What is the theoretical background that supports this research?

The research is supported by two main theories: the Positive Accounting Theory, which predicts the consequences of accounting choices, and the Agency Theory, which examines the conflicts between principals and agents in decision-making processes.

What is the significance of the COVID-19 pandemic in the context of this research?

The COVID-19 pandemic significantly impacted the supply chain, especially for companies dependent on imports from China, affecting their inventory management and the choice of inventory valuation methods due to disruptions in the supply of goods.

What was the hypothesis regarding liquidity's effect on inventory valuation method selection?

The hypothesis is that liquidity positively and significantly influences the selection of the inventory valuation method.

What is the role of leverage in this study?

Leverage, as measured by the debt-to-total assets ratio, is investigated to see if it has a positive and significant effect on the choice of inventory valuation method.

What type of data is used in this research?

The research uses quantitative data, primarily secondary data from annual reports and sustainability reports published by companies between 2018 and 2020.

How was the sample for the research selected?

The sample was selected using purposive sampling, focusing on 70 trading companies listed on the Indonesia Stock Exchange that published financial reports consistently over the study period and used either FIFO or Weighted Average for inventory valuation.

What are the potential practical benefits of this research?

Practically, the research benefits both researchers and companies by providing insights that can help businesses make better decisions regarding inventory valuation, which could improve company performance, profitability, and overall management.