Concentration Ratio, Advertising Intensity, Sales Growth, The Government's Regulation And Profitability In Indonesian Cigarette Industry

Yulia Saftiana, Bernadette Robiani, Syamsurijal Kadir, Suhel

2018

Abstract

This study examined the effect of concentration ratio, advertising intensity, and the government’s regulation on profitability in Indonesian cigarette industry. This study used secondary data of the cigarette industry in Indonesia. It was from the Central Bureau of Statistics (BPS) and the Indonesia Stock Exchange (BEI). In this study, the population is the manufacturing industry sector in Indonseia during the period 1993 to 2013. Selection of this sample is based on the completeness of the data held. The results show Concentration, advertising intensity, regulation, and sales growth have an effect on long-term earnings stronger than short-term. The test results also show that Government Regulation No. 81 of 1999 has not significantly affected the structure, conduct and performance of the cigarette industry. Despite the descriptive earnings of cigarette companies listed on the Indonesia Stock Exchange tend to be smaller, but total sales are increasing. This means that government policy has not been effective in reducing cigarette consumption. Law No. 32 of 2002 on broadcasting is statistically significant affecting price cost margin in a positive direction. However, the descriptive ratio of earnings in cigarette companies listed on the Indonesia Stock Exchange tend to decline.

Paper Citation

in Harvard Style

Saftiana Y., Robiani B., Kadir S. and Suhel. (2018). Concentration Ratio, Advertising Intensity, Sales Growth, The Government's Regulation And Profitability In Indonesian Cigarette Industry.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 693-698. DOI: 10.5220/0008444106930698

in Bibtex Style

@conference{seabc18,
author={Yulia Saftiana and Bernadette Robiani and Syamsurijal Kadir and Suhel},
title={Concentration Ratio, Advertising Intensity, Sales Growth, The Government's Regulation And Profitability In Indonesian Cigarette Industry},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={693-698},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008444106930698},
isbn={978-989-758-387-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - Concentration Ratio, Advertising Intensity, Sales Growth, The Government's Regulation And Profitability In Indonesian Cigarette Industry
SN - 978-989-758-387-2
AU - Saftiana Y.
AU - Robiani B.
AU - Kadir S.
AU - Suhel.
PY - 2018
SP - 693
EP - 698
DO - 10.5220/0008444106930698