Journal of Management Research and Review (JMRR)

The Role of Downstreaming Policies in Regulating the Interaction Between Liquidity, Solvability, and Firm Size on the Financial Situation. (of Companies IDX Nickel Mining Sector)

Hilman, Akbar, Marjohan, Masno, Sampurnaningsih, Sri Retnaning

24 November 2025 · Vol. 1, Issue 5, pp. 202-207

DOI: 10.65150/EP-jmrr/V1E5/2025-05

Abstract

The purpose of this study to analyze the impact of liquidity, solvability, and firm size, as well as the moderating role of downstreaming policy (or hilirisasi policy), on corporate financial performance. This stuy fills a vacuum in the literature by focusing specifically on the Indonesian nickel mining sector. The research method employs moderated regression analysis and panel data regression to test these relationships. The sample selection was conducted through the use of purposive sampling. technique, resulting 6 nickel mining firms that are listed on the Indonesia Stock Exchange (IDX) comprise the sample. with financial report periods spanning 2015–2024. The results indicate that liquidity, solvability, and firm size collectively possess an important influence on corporate financial results. However, partially, only solvability, which is viewed in the context of efficient debt management according to the Capital Structure Theory, is proven to have a significant influence. Conversely, liquidity and firm size partially exhibit no significant influence, supported by the Trade-Off Theory and the concept of diseconomies of scale. Furthermore, the moderated regression test results show that the downstreaming policy is not capable of significantly moderating the relationship between the three independent variables and financial performance, consistent with the Institutional Theory, which considers the policy merely a bureaucracy of compliance. This set of findings holds substantial relevance for both investors and policymakers.

Keywords: Liquidity, solvability, firm size, financial performance, downstreaming policy.

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Hilman, Akbar, Marjohan, Masno, Sampurnaningsih, & Sri Retnaning (2025). The Role of Downstreaming Policies in Regulating the Interaction Between Liquidity, Solvability, and Firm Size on the Financial Situation. (of Companies IDX Nickel Mining Sector). Journal of Management Research and Review, 1(5), 202-207. https://doi.org/10.65150/EP-jmrr/V1E5/2025-05

@article{Hilman2025,
  title   = {The Role of Downstreaming Policies in Regulating the Interaction Between Liquidity, Solvability, and Firm Size on the Financial Situation. (of Companies IDX Nickel Mining Sector)},
  author  = {Hilman and Akbar and Marjohan and Masno and Sampurnaningsih and Sri Retnaning},
  journal = {Journal of Management Research and Review},
  year    = {2025},
  volume  = {1},
  number  = {5},
  pages   = {202-207},
  doi     = {10.65150/EP-jmrr/V1E5/2025-05},
  url     = {https://doi.org/10.65150/EP-jmrr/V1E5/2025-05}
}

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