Proceedings of the 6th International Accounting Conference (IAC 2017)

The Effect of Capital Expenditure and Market Share on Profits per Region in an Indonesian Mobile Telecommunications Company

Authors
Nursakti Niko Rosandy, Aria Farah Mita
Corresponding Author
Nursakti Niko Rosandy
Available Online August 2017.
DOI
10.2991/iac-17.2018.26How to use a DOI?
Keywords
Capital Expenditure, Market Share, Profit, Region, Mobile Telecommunication
Abstract

This research aims to examine the effect of capital expenditure (CAPEX) and market share on profits per region in an Indonesian mobile telecommunications company. This research uses all regions (10) during the period 2009-2016 (8 years), resulting in 80 observations. The research uses a panel data regression model and shows that CAPEX and market share have a positive influence on profit. The company in the mobile telecommunications industry should consider the demand from the aspects of customer needs and the need to regularly update technology; therefore, the company should be more selective in making investments. The selection of the performance periods used plays a role in determining whether or not CAPEX has any effect on profit, as evidenced in the model using the t-1 and t-3 periods. CAPEX does not have an influence on profit in the t-1 period, whereas CAPEX does have a positive influence on profit in the t-3 period. Market share has a positive influence on profit. With a large market share, the company has strengths including economies of scale, market power, and quality management.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th International Accounting Conference (IAC 2017)
Series
Advances in Economics, Business and Management Research
Publication Date
August 2017
ISBN
10.2991/iac-17.2018.26
ISSN
2352-5428
DOI
10.2991/iac-17.2018.26How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Nursakti Niko Rosandy
AU  - Aria Farah Mita
PY  - 2017/08
DA  - 2017/08
TI  - The Effect of Capital Expenditure and Market Share on Profits per Region in an Indonesian Mobile Telecommunications Company
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 146
EP  - 150
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.26
DO  - 10.2991/iac-17.2018.26
ID  - Rosandy2017/08
ER  -