The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4)
This aims to analyze the impact of macroeconomic variables, namely economic growth, inflation rate, and labor wages, on the long-term financial growth rate of construction companies in Indonesia in 2010.1 - 2021.4. The research method uses the Error Correction Model - Engle Grager. The stationary da...
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| Format: | Article |
| Language: | Indonesian |
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Universitas Dian Nuswantoro
2025-03-01
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| Series: | Jurnal Penelitian Ekonomi dan Bisnis |
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| Online Access: | https://publikasi.dinus.ac.id/index.php/jpeb/article/view/11617 |
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| author | Rini Raharti Aditya Kurniawan |
| author_facet | Rini Raharti Aditya Kurniawan |
| author_sort | Rini Raharti |
| collection | DOAJ |
| description | This aims to analyze the impact of macroeconomic variables, namely economic growth, inflation rate, and labor wages, on the long-term financial growth rate of construction companies in Indonesia in 2010.1 - 2021.4. The research method uses the Error Correction Model - Engle Grager. The stationary data, a root unit test, the first difference, and a cointegration test are carried out to ensure that the model can be continued with the ECM equation. The data used in this study is a secondary time series data published by the BPS. The result of this study is that there is a long-term balance correlation between economic growth, inflation, and labor wages with the financial growth rate of construction companies in Indonesia for the period 2010.1 - 2021.4. The theoretical contribution of this study is the relationship between macroeconomic variables and the financial growth rate of construction companies in Indonesia. The variables of economic growth, inflation rate, and labor wages correlate with the long-term financial growth of construction companies in Indonesia. The novelty of this research lies in an approach that focuses on the specific characteristics of the construction industry in Indonesia, which is different from previous studies that were primarily conducted in developed countries. This study develops an ECM-based analytical model that considers the adjustment mechanism for short-term imbalances and how macroeconomic variables shape the financial stability of construction companies in the long term. Practically, the results of this study provide policy recommendations for the government and construction industry players in anticipating the impact of macroeconomic variables on the company's financial stability. |
| format | Article |
| id | doaj-art-31bd0924bf004a6f8592650737f83e96 |
| institution | OA Journals |
| issn | 2442-5028 2460-4291 |
| language | Indonesian |
| publishDate | 2025-03-01 |
| publisher | Universitas Dian Nuswantoro |
| record_format | Article |
| series | Jurnal Penelitian Ekonomi dan Bisnis |
| spelling | doaj-art-31bd0924bf004a6f8592650737f83e962025-08-20T01:47:53ZindUniversitas Dian NuswantoroJurnal Penelitian Ekonomi dan Bisnis2442-50282460-42912025-03-01101182910.33633/jpeb.v10i1.1161717124The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4)Rini Raharti0Aditya Kurniawan1Department of Economics, Faculty of Economics and Business, Janabadra University, YogyakartaDepartment of Economics, Faculty of Economics and Business, Janabadra University, YogyakartaThis aims to analyze the impact of macroeconomic variables, namely economic growth, inflation rate, and labor wages, on the long-term financial growth rate of construction companies in Indonesia in 2010.1 - 2021.4. The research method uses the Error Correction Model - Engle Grager. The stationary data, a root unit test, the first difference, and a cointegration test are carried out to ensure that the model can be continued with the ECM equation. The data used in this study is a secondary time series data published by the BPS. The result of this study is that there is a long-term balance correlation between economic growth, inflation, and labor wages with the financial growth rate of construction companies in Indonesia for the period 2010.1 - 2021.4. The theoretical contribution of this study is the relationship between macroeconomic variables and the financial growth rate of construction companies in Indonesia. The variables of economic growth, inflation rate, and labor wages correlate with the long-term financial growth of construction companies in Indonesia. The novelty of this research lies in an approach that focuses on the specific characteristics of the construction industry in Indonesia, which is different from previous studies that were primarily conducted in developed countries. This study develops an ECM-based analytical model that considers the adjustment mechanism for short-term imbalances and how macroeconomic variables shape the financial stability of construction companies in the long term. Practically, the results of this study provide policy recommendations for the government and construction industry players in anticipating the impact of macroeconomic variables on the company's financial stability.https://publikasi.dinus.ac.id/index.php/jpeb/article/view/11617economic growth, inflation, labor wages, construction companies, ecm |
| spellingShingle | Rini Raharti Aditya Kurniawan The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4) Jurnal Penelitian Ekonomi dan Bisnis economic growth, inflation, labor wages, construction companies, ecm |
| title | The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4) |
| title_full | The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4) |
| title_fullStr | The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4) |
| title_full_unstemmed | The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4) |
| title_short | The Impact of Macroeconomic Variables on the Financial Growth of Construction Companies in Indonesia: An Analysis with an Error Correction Model (2010.1 – 2021.4) |
| title_sort | impact of macroeconomic variables on the financial growth of construction companies in indonesia an analysis with an error correction model 2010 1 2021 4 |
| topic | economic growth, inflation, labor wages, construction companies, ecm |
| url | https://publikasi.dinus.ac.id/index.php/jpeb/article/view/11617 |
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