MEASURING THE FUNDAMENTAL ATTRACTIVENESS OF PALM OIL BUSINESS AMIDST THE LEGITIMACY CRISIS: THE MODERATING ROLE OF OIL EXTRACTION RATE ON THE INFLUENCE OF INTEREST COVERAGE RATIO AND EBITDA MARGIN ON STOCK PRICES
Keywords:
relevance values, theory signal, interest coverage ratio, EBITDA margin, oil extraction rate, price shareAbstract
Industry coconut Central Indonesian palm oil at a crossroads paradoxical : in one side face crisis legitimacy scale national follow 4.09 million in order hectares garden palm oil illegal in area forest by Unit Task Forest Area Regulation , while on the other hand recording foreign exchange export highest throughout history amounting to US$ 35.87 billion by 2025. Research This aim test Is the capital market stable? appreciate the fundamentals of resilience financial issuer plantation palm oil in the middle pressure legitimacy said , with positioning the interest coverage ratio (ICR) and EBITDA margin as predictor price share as well as oil extraction rate (OER) as variables moderation . Balanced panel data collected from ten issuer plantation palm oil on the Indonesia Stock Exchange during period 2023 to first quarter 2026 (40 observations ) and analyzed using moderated regression analysis based on panel data regression with error standard clustered . Estimation results show that ICR and EBITDA margin have an effect positive significant to price OER shares are proven strengthen the influence of EBITDA margin on price shares (β = 88.535; p = 0.011) and behave as moderator pure , but No moderate ICR influence . Simple slopes analysis confirms that sensitivity price share to profitability increase in a way monoton along increase yield . Findings This indicates that investors do differentiation fundamentally based instead of punish industry in a way collectively , so that Power lure business palm oil for perpetrator business rooted in profitability whose credibility amplified by excellence operational agronomist .
References
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Sage Publications.
Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589–609.
Badan Pengawasan Keuangan dan Pembangunan. (2026, 14 Januari). Satgas PKH matangkan strategi penertiban kawasan hutan 2026. https://bpkp.go.id/id/berita/DYY9/satgas-pkh-matangkan-strategi-penertiban-kawasan-hutan-2026
Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2), 159–178.
Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Springer.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.
Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting: Another view. Journal of Accounting and Economics, 31(1–3), 77–104.
Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239–253.
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67.
Corley, R. H. V., & Tinker, P. B. (2016). The oil palm (5th ed.). Wiley Blackwell.
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. The Pacific Sociological Review, 18(1), 122–136.
Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25(2), 383–417.
Gabungan Pengusaha Kelapa Sawit Indonesia. (2026, 13 Maret). Kinerja sawit 2025 menguat: Produksi naik, ekspor tembus Rp590 triliun. https://gapki.id/news/2026/03/13/kinerja-sawit-2025-menguat-produksi-naik-ekspor-tembus-rp590-triliun/
Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics (5th ed.). McGraw-Hill.
Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46(6), 1251–1271.
Jaring.id. (2026, 11 Juni). Dari penertiban hutan ke pengambilalihan lahan. https://jaring.id/dari-penertiban-hutan-ke-pengambilalihan-lahan/
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Kompas.com. (2026, 20 Januari). Satgas PKH kuasai kembali 4,09 juta hektar kebun sawit ilegal. https://nasional.kompas.com/read/2026/01/20/21451911/satgas-pkh-kuasai-kembali-409-juta-hektar-kebun-sawit-ilegal
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297.
Murphy, D. J., Goggin, K., & Paterson, R. R. M. (2021). Oil palm in the 2020s and beyond: Challenges and solutions. CABI Agriculture and Bioscience, 2, 39.
Ohlson, J. A. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661–687.
Peraturan Presiden Republik Indonesia Nomor 5 Tahun 2025 tentang Penertiban Kawasan Hutan.
Pinem, N. A., & Hasibuan, T. F. H. (2023). Pengaruh current ratio dan account recevaible turnover terhadap return on assets pada perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2019–2021. Jurnal Ekonomi Bisnis Digital, 2(2).
Putra, D. P., Habibie, M., Hasibuan, T. F. H., & Nasution, S. T. A. (2024). Pengaruh kepemilikan institusional, kepemilikan manajerial dan profitabilitas terhadap manajemen laba pada perusahaan sub sektor makanan dan minuman periode 2020–2023. Multidisciplinary Indonesian Center Journal, 1(4), 1827–1838. https://doi.org/10.62567/micjo.v1i4.203
Sharma, S., Durand, R. M., & Gur-Arie, O. (1981). Identification and analysis of moderator variables. Journal of Marketing Research, 18(3), 291–300.
Sianturi, I. P., Hasibuan, T. F. H., Sari, W. P., Dolok Saribu, A. L. N., & Sari, W. I. (2024). Pengaruh pengungkapan akuntansi lingkungan dan kinerja keuangan terhadap nilai perusahaan farmasi yang terdaftar di BEI 2018–2022. Journal of Education, Humaniora and Social Sciences, 7(2), 344–354. https://doi.org/10.34007/jehss.v7i2.2343
Sihombing, I., Sagala, I. C., & Hasibuan, T. F. H. (2024). Application of tax planning to the fixed asset depreciation method at PT. Perkebunan III. Multidisciplinary Indonesian Center Journal, 1(2), 679–688. https://doi.org/10.62567/micjo.v1i2.91
Sitorus, S., Hasibuan, T. F. H., & Sebayang, M. M. B. (2025). The effect of ownership concentration, cash holding on company value with dividend payout ratio as an intervening variable. International Journal of Social Science, Educational, Economics, Agriculture Research and Technology, 4(4), 597–605. https://doi.org/10.54443/ijset.v4i4.715
Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. The Academy of Management Review, 20(3), 571–610.
Woittiez, L. S., van Wijk, M. T., Slingerland, M., van Noordwijk, M., & Giller, K. E. (2017). Yield gaps in oil palm: A quantitative review of contributing factors. European Journal of Agronomy, 83, 57–77.
Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data (2nd ed.). MIT Press.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Thezar Fiqih Hidayat Hasibuan
This work is licensed under a Creative Commons Attribution 4.0 International License.
