THE INFLUENCE OF LEASING EFFICIENCY AS THE IMPLEMENTATION OF PSAK 73 ON FINANCIAL PERFORMANCE IN TRANSPORTATION INDUSTRY IN INDONESIA

Abstract

Leasing activities becomes important because using leasing certainly saves capital which can then be utilized to fund other company activities or invest in profitable sectors. By analyzing leasing efficiency, it can help company to reduce costs and boost profits. This research aims to analyze the interaction of relationship between company’s leasing efficiency toward the company financial performance with financial ratios as the impact of PSAK 73 new accounting standard that implemented in Indonesia in 2020. The most obvious difference is in the classification of leases, especially for lessees that required to classify the lease as a finance lease in order for the lease to be recognized in the company's assets and liabilities, except for short-term leases and low-value of leases. The sample taken in this research are companies that listed in the Indonesia Stock Exchange in the transportation sectors in 2020 and it obtained 27 companies as samples. Researcher used Partial Least Square using a special application from Smart PLS Version 3.0 as data analysis technique, which does not assume current data with a certain scale measurement, or can use with a small sample. Based on the research results, it is known that leasing efficiency have a positive impact toward company financial performance. Leasing efficiency have a positive impact on ROE with significant effect.