Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2024)

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Market Concentration and Firm Performance of Manufacturing Companies

Authors
Feny Ilmiah Wulandari1, *, Yuli Soesetio1
1Universitas Negeri Malang, Jl. Semarang No. 5, Kota Malang, 65145, Jawa Timur, Indonesia
*Corresponding author.
Corresponding Author
Feny Ilmiah Wulandari
Available Online 19 November 2024.
DOI
10.2991/978-94-6463-576-8_4How to use a DOI?
Keywords
Profitability; Market Concentration; Financial Performance
Abstract

This research aims to analyze the impact of market concentration, financial risk, return on assets, debt policy, and company size on the performance of companies in the manufacturing industry. The study covered all manufacturing sector companies over an 11-year period from 2009 to 2020, encompassing a total of 195 companies that met the specified criteria. Using multiple regression analysis, the research shows that market concentration, measured by the Herfindahl-Hirschman Index, and other company-specific factors consistently influence profitability. However, the study yielded surprising results regarding company size, which was found to have a significant negative effect on performance. This negative impact is attributed to the increase in operational and administrative costs as the number and size of assets under management grow, ultimately leading to a decrease in company profits.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 November 2024
ISBN
978-94-6463-576-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-576-8_4How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Feny Ilmiah Wulandari
AU  - Yuli Soesetio
PY  - 2024
DA  - 2024/11/19
TI  - Market Concentration and Firm Performance of Manufacturing Companies
BT  - Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2024)
PB  - Atlantis Press
SP  - 23
EP  - 31
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-576-8_4
DO  - 10.2991/978-94-6463-576-8_4
ID  - Wulandari2024
ER  -