Determinants of Operational Performance in Manufacturing-Related Firms Listed Under IDX-IC

Abstract

This study aims to examine the effect of Circular Economy Disclosure (CED), Financial Leverage (FINLEV), Current Asset Intensity (CATA), and Liquidity (LIQ) on the operational performance of manufacturing-related firms listed under the Indonesia Stock Exchange Industrial Classification (IDX-IC). Operational performance is measured using Operating Profit Margin (OPM). This research employs a quantitative approach using secondary data obtained from annual reports and sustainability reports of industrial sector companies listed on the Indonesia Stock Exchange during the 2022–2024 period. The sample consists of 32 companies with 96 firm-year observations selected through purposive sampling. The data were analyzed using multiple linear regression. The results show that Circular Economy Disclosure and Current Asset Intensity have a positive and significant effect on operational performance. Meanwhile, Financial Leverage and Liquidity have a negative and significant effect on operational performance. These findings indicate that sustainability-related disclosure and firm financial characteristics play important roles in determining operational performance. Firms that disclose circular economy practices and maintain adequate current assets tend to achieve better operational performance, whereas excessive leverage and liquidity may reduce operational profitability. This study contributes to the literature by providing empirical evidence on the determinants of operational performance in manufacturing-related firms in Indonesia and highlights the importance of sustainability disclosure and efficient financial resource management.