Managerial Innovations in Structure Capital and Important Decisions in Determining the Profit Management of Plantation Company: Empirical Evidence in ASEAN Countries

Research on the financial management of plantation company is very important, because it provides different information, especially in ASEAN countries. Several research has been conducted, but none has fully discussed how to manage its profit. Therefore, the purpose of this study is to ascertain how managerial innovation helps in deciding financial management using a profit management perspective. It is also important to strengthen financial ratios such as Current, Total Asset Turn Over, Debt to Equity, Return On Assets, and Price Earning Ratio towards Profit Changes for plantation companies listed on Indonesia (IDX) and Malaysia (BEM) Stock Exchange. Furthermore, this study also examines the cash flow patterns in the management of plantation companies listed on the IDX & BEM. The results shows the relationship between CR, TATO, DER, ROA, and PER on company profit management was found, both in Malaysia and Indonesia. It can be concluded that both ROA and PER have positive and negative effect on profit changes, while CR, TATO, and DER variables have no significant effect in Indonesia. However, in Malaysian companies, only the DER had a significant positive effect on profit changes.