Journal of Economics and Business Letters

Effects of total asset turnover, current ratio, and debt-to-equity ratio on the profit margin ratios

2026-04-01T13:52:35+07:00

This study aims to examine how the profit margin ratios of industrial sector companies listed on the Iraqi Stock Exchange between 2018 and 2023 are affected by the debt-to-equity ratio, current ratio, and total asset return. In this study, a quantitative methodology was used to analyze audited data of financial lists using EViews 12 software. It aims to show the effects of each of the dependent variables of net profit margin (NPM) and gross profit margin (GPM) on the independent variables of debt-to-equity ratio (DER), current ratio (CR), and total asset turnover (TAT). The results based on panel data from 10 manufacturing sector firms indicate the inter-variable effect as follows: The net profit margin (NPM) is significantly impacted negatively by DER, while GPM is positively impacted by DER. This NPM effect indicates that financial effects further reduce profitability. Nevertheless, CR has a slight beneficial impact on GPM and a non-significant negative impact on NPM. In addition, TAT indicates operational inefficiencies by increasing GPM and significantly reducing NPM. To promote sustainable growth in the Iraqi industrial sector, the report recommends increasing asset efficiency, optimizing capital structure, and strengthening liquidity management. This study makes several recommendations for legislators, investors, and corporate executives.

The effect of tax planning, deferred tax expense, and earnings management on tax avoidance with corporate governance as a moderating variable

2026-04-13T11:40:02+07:00

This study examines the effects of tax planning, deferred tax expenses, and earnings management on tax avoidance, with corporate governance as a moderating variable. The research sample comprises 52 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period, yielding 260 firm-year observation. Data analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS) through SmartPLS 4. The findings reveal that tax planning, deferred tax expenses, and earnings management each have a significant positive effect on tax avoidance. Corporate governance effectively moderates (weakens) the relationship between tax planning and tax avoidance and between earnings management and tax avoidance. However, corporate governance does not significantly moderate the effect of deferred tax expenses on tax avoidance. These findings offer theoretical contributions to agency and tax compliance theories in the Indonesian context and provide practical implications for tax authorities, regulators, and corporate management in designing more effective oversight mechanisms to mitigate aggressive tax avoidance practices.

Causal analysis of macroeconomic shocks on financial markets through machine learning methods

2026-04-01T13:52:03+07:00

Macroeconomic announcements often trigger sharp market reactions; however, their causal impact is difficult to measure. This study quantifies the causal effects of the consumer price index (CPI), non-farm payrolls (NFP), and Federal Open Market Committee (FOMC) decisions on the S&P 500, Gold, and the VIX using daily data from 2022 to 2024. Three estimators are applied: Ordinary Least Squares, Propensity Score Matching, and Double Machine Learning. The results show limited price adjustments but strong and statistically meaningful volatility responses. FOMC shocks generate the most persistent effects, whereas CPI and NFP impacts are short-lived. Overall, the findings indicate that volatility, rather than prices, is the primary transmission channel of macroeconomic news, highlighting the value of causal machine learning in identifying structural market responses.

The effect of hedonic shopping motivation and e-WOM on impulse buying mediated by positive emotion among Sociolla consumers in Jabodetabek area

2026-04-12T18:31:09+07:00

This study reveals that positive emotions triggered by hedged shopping motives and digital buzz from eWOM significantly boost shoppers' urge for spur-of-the-moment purchases at Sociolla. Using SmartPLS-driven Structural Equation Modeling (SEM), the analysis of survey data on active Sociolla users uncovers direct and indirect links: hedonic drives and eWOM both spark positive feelings and directly fuel impulse buys, while positive emotions fully bridge the path from these drivers to uncontrolled spending. To quantitatively probe this dynamic, the study surveyed Sociolla's regular customers using structured questionnaires. Ultimately, it highlights how digital chatter and pleasure-seeking impulses cultivate feel-good states that propel snap buying decisions. The limitation of this study lies in the sampling process, which only focuses on Sociolla consumers in the Jabodetabek area. Practically, this research provides implications for Sociolla and other digital beauty industry players to strengthen enjoyable shopping experiences and improve the quality of electronic word-of-mouth (eWOM) through authentic consumer review. Theoretically, this study enriches the consumer behavior literature by validating the mediating function of positive emotions. It connects hedonic motivation and digital information exposure to impulse buying in the beauty e-commerce ecosystem.