DIFFERENCES IN ACCOUNTING PERFORMANCE BASED ON STRATEGIC TYPOLOGY IN MANUFACTURING COMPANIES LISTED ON IDX 2007-2010

Amount: DIFFERENCES IN ACCOUNTING PERFORMANCE BASED ON STRATEGIC TYPOLOGY IN MANUFACTURING COMPANIES LISTED ON IDX 2007-2010 PERIOD

Authors: Kristianto Harmawan

Item Type: Thesis

Memberships: Master of Management Study Program, Faculty of Economics and Business Universitas Airlangga Surabaya, Indonesia

Publisher: Airlangga University

Abstract

In increasingly competitive conditions, companies are required to develop strategies that can create competitive advantage. Miles and Snow divide the company's strategy into four types of strategies, namely prospector, defender, analyzer, and reactor, with prospector and defender as two opposite types of strategy. Determining the company's strategy, both prospectors and defenders will have an impact on company performance, especially accounting performance. The purpose of this study is to empirically examine the differences in accounting performance between prospector companies and defender companies. The company's accounting performance is measured by four variables, namely profit growth, sales growth, dividend payout, and return on investment. Differences in product life cycle concepts are used to analyze differences in the accounting performance of prospector and defender companies. The selection of companies with the type of prospector and defender was determined using two control variables, namely the ratio of growth of the number of employees to the number of net sales (KARPEN) and the ratio of Price to Book Value (PBV). The population in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2007 - 2010 with a total of 123 companies. The sample was selected using purposive sampling method. The sample selection of prospector and defender types was analyzed using Cluster Analysis on the two existing control variables. Accounting performance data in this study were analyzed using the Mann-Whitney U test with the help of SPSS 17.0 software. The results showed that there were 40 sample companies, 37 companies with the prospector type and 3 with the defender type. The average profit growth and sales growth of prospector companies is greater than that of defender companies but the results are not significant. Dividend payout and Return On Investment of prospector companies are smaller than defender companies and are proven to be significant.

Keywords: Prospector and Defender, Income Growth, Sales Growth, Dividend Payout, Return On Investment, Life Cycle Theory.

sources: http://repository.unair.ac.id/37098/