The Influence of Firm Size, Liquidity, and Audit Quality towards Corporate’s Performance in Plastic and Packing Industry: Empirical Survey from Developing Economies

Empirical Survey from Developing Economies

Abstract

This research is focused on plastic and packing subsectors, which explained the importance of the context of production and consumption of this product for many countries in creating economic value according to some reporting and research literature. This study aims to find out and investigate three factors i.e., firm size, liquidity, and audit quality in influencing the corporate’s performance. The corporate’s performance quantifies utilizing the return on assets proxy, and audit quality use a fee audit proxy. The source data consist of secondary data from financial reports of the corporation’s plastic and packing industry registered at the Indonesian Stock Exchange for the 2013-2019 periods, whereas as many as seven firms become the final sample with purposive sampling with definite judgment. The data analysis utilized multiple linear regression. The results exhibited that the firm size and Audit Quality do not influence towards corporate’s Performance while liquidity does imply the corporate’s Performance in the plastic and packing industry.