Research Paper
Year: 2020 | Month: April | Volume: 7 | Issue: 4 | Pages: 526-535
Analysis of the Implementation of Business Strategy and Financial Performance in Open Aviation Companies in Five ASEAN Countries
Dewi Juliatin, Isfenti Sadalia, Yeni Habsah
Master of Management Study Program, Postgraduate School of University of Sumatera Utara
Corresponding Author: Dewi Juliatin
ABSTRACT
This study aims to analyze the implementation of business strategies and financial performance in stock exchange-listed aviation in five ASEAN countries. The business strategy used is based on the typology of Miles and Snow which is divided into three types namely prospector, analyzer and defender. Four proxies are used to identify business strategy variables, namely number of employees on total sales (EMPSAL), company growth (MtoB), marketing (MARKET), fixed asset intensity (PPEINT) and financial performance variables namely return on equity (ROE), current ratio and dividend payout ratio (DPR). Forty-six annual reports published on the state stock exchange were used as samples in this study. The results of the total scoring of the Q1, median and Q3 values obtained 21 annual reports with prospector strategies, 14 analyzer strategies, and 11 defender strategies. However, out of 46 samples, only 21.74% of annual reports use a consistent type of strategies and another 78.26% use different strategies. The results of this study demonstrated that there is a significant influence on the prospector's strategy on the current ratio with a statistical T value of 2.455> 1.96 with an alpha of 5% which means that H0 is rejected and H1 is accepted. This significant result was also shown in the defender's strategy towards the DPR's value with a T value of 3,121> 1.96. But there is no type of strategy that have a significant effect on the value of ROE.
Keywords: Business strategy, Miles and Snow, Financial Performance, Stock exchange-listed aviation
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