THE IMPACT OF INFLATION AND REAL WAGES ON GROSS PROFIT MARGINS FOR LQ 45 COMPANIES IN INDONESIA STOCK EXCHANGE

Abstract

The purpose of this study is to find out the impact both inflation (INF) and real wages (RW) have on gross profit margins (GPM) for LQ 45 companies in Indonesia. The LQ 45 companies are the most liquid companies in Indonesia Stock Exchange and were chosen as the most appropriate object of study. This study analyzed the data by using panel data regression models for 78 companies collectively for years 2004 to 2012. The results indicate that gross profit margins are negatively correlated to inflation and positively correlated to real wages. Future research may include companies that participated in the months of August to December.

Keywords

• Indonesia
• LQ 45 perusahaan
• margin laba kotor
• Inflasi
• Upah riil
• analisis data panel.