Effects of Infrastructure Development, Inflation and Economic Growth to Performance Company (ROA, Tobin's Q, PBV): Study on Registered Infrastructure Support Companies in IDX Period 2014-2019

The financial performance can be used as a benchmark of the ability of an organization or company in achieving its goals. Performance measurement is one of the most important factors for an organization or company, performance measurement is a process of measuring the extent to which a company does work to achieve its goals. The research investigated the impact of infrastructure, economic growth and inflation on financial performance of infrastructure support companies listed in Indonesian Stock Exchange Period 2014-2019 which is proxied by ROA (Return on Assets), Tobin’s Q and PBV (Price to Book Value). The population of this research was the infrastructure support companies listed on the Indonesian Stock Exchange period 2014-2019. Research sampling was conducted using The Purposive Sampling Method. The data analysis was camed out using classical assumption test, multiple linear regression analysis, t-test, F-test and determinan (R2) test with SPSS 21. The research finding showed that the model has an effect on the financial performance as proxied by ROA. So the results of the hypothesis test show that: (1) Infrastructure development has a negative and significant effect on ROA. (2) The inflation rate has a positive and significant effect on ROA. (3) Economic growth has no significant effect on ROA. Meanwhile, the model has no effect on financial performance which is proxied in Tobin's Q and PBV.


Introduction
The company's performance is an essential part of measuring its success because it is the first thing an investor will see. The company's performance is a complete display of the company's state over a while, is the result or achievement that is influenced by the company's operational activities in utilizing the resources owned (Srimindarti, 2004). The performance of a company can also be seen from how much profit the company earns. Corporate profits are an indicator of the company's fulfilling its obligations for funders and are one of the elements in creating company value that shows the company's prospects in the future (Veronica & Wardoyo, 2013). One of the proxies used in measuring a company's performance is Return on Assets (ROA) (Ahmad & Zabri, 2016). ROA reflects the company's ability to generate profits for its shareholders by utilizing assets owned by the company (Herli & Hafidhah, 2017). In addition, the company's performance can also be projected in Tobin's Q and PBV (Price to Book Value).
Sales growth is the most crucial part of the company's performance assessment. Generally, the higher the sales growth rate indicates that the higher the level of profitability obtained by the company. The high level of profitability of the company indicates the company's increasingly better performance.
Since 2015, the government has shifted subsidy spending to productive spending, namely infrastructure development, health, and education. The infrastructure budget continues to increase from Rp 269 trillion in 2016 to around Rp 415 trillion in 2019 (figure 1). Infrastructure development is currently one of the main concerns of the Indonesian government. The increase in development projects throughout Indonesia will require cement companies to increase their production capacity and performance. This is reflected in the increase in cement sales volume from 48 million tons in 2011 to 62 million tons in 2016.
The Ministry of PUPR, through the Directorate General of Bina Marga has completed the construction of a national road along 3,432 km, including roads on the borders of Papua, Kalimantan, and NTT. Then a new toll road was built along 941 km with a target of the end of 2019 reaching 1,852 km. In support of water and food security, the target of building 65 dams, in 2018 as many as 8 dams have been completed, namely Paya Seunara and Rajui Dams in Aceh, Jatigede in West Java, Bajulmati and Nipah Jatim, Titab in Bali, Barnacle in Balikpapan, Raknamo and Tanju in NTB. The other dam will be completed gradually until 2023. The construction of 65 dams will add reservoir irrigation services by 160,000 hectares, industrial capacity of 2.11 billion m3, raw water is available as much as 3.02 m3 / second and produces energy potential of 145 MW.
Infrastructure development that continues to be launched by the government is expected to positively impact Indonesia's economic growth, increasing investment and increasing state foreign exchange through tourism is increasingly wide open with the improvement and support of the development of physical infrastructure of a region. The existence of adequate infrastructure will contribute to the smooth production and distribution of goods and services that can increase economic growth and economic equality. The existence of infrastructure development will undoubtedly encourage foreign and domestic investors, long-term investors and momentum investors to invest in Indonesia.
Some previous research became the basis of hypothesis making in this study, among others, hypothesis 1. Infrastructure development affects the company's performance. Daryanto (2018) researched that Indonesia's increasing infrastructure development projects will require cement companies to increase their production capacity and performance. This is reflected in the increase in cement sales volume from 48 million tons in 2011 to 62 million tons in 2016. Cement consumption in Indonesia continues to grow, even predicted to overgrow in the coming period and development in Indonesia planned by the government. The running of infrastructure projects followed by increasingly efficient production is believed to encourage the cement business.
Research in Prague, Czech Republic conducted by Palei (2015), examined the extent of the influence of infrastructure on national competitiveness. Research through the effectiveness of infrastructure management can improve industrial policies and gain national competitiveness. Paul (2004) examined the influence of public infrastructure on the productive performance of 12 manufacturing industries in Canada. This research shows that public infrastructure has an important role in the productivity of the manufacturing industry.
Another researcher is Bhanawat (2018), a selected cement company in India with research results showing infrastructure development and construction affect financial performance and vice versa. Infrastructure development resulted in high demand for cement which increased the cement industry's composite stock index. The corresponding research is conducted by (Bulqiah et al., 2020), which claims that government infrastructure spending affects stock prices. This means that the more government spending on the infrastructure sector, the more the stock price increases.
For Hypothesis 2, Inflation affects the performance of companies in line with Paul and Theodore's research (2012), research aims to find out the relationship between stock returns and Inflation in countries that are members of the G7. The results stated that Inflation has a positive and significant influence on stock returns. Another researcher, Kumar et al (2015), aims to find out the relationship between stock returns and Inflation. The results stated that Inflation has a positive and significant influence on stock returns.
Hypothesis 3, Economic growth affects the performance of the company. Research conducted by Egbunike and Okerekeoti (2018) in Nigeria examined the interrelationship between macroeconomic factors, corporate characteristics and the financial performance of manufacturing companies in Nigeria. The results showed economic growth had a significant influence on the company's characteristics including profitability, leverage and liquidity. Ramiz et al. (2014), examined the relationship between a company's performance, macro-economic variables, and company size. The analysis was conducted over 12 years, for seven non-financial sectors of Pakistan's economy, taking into account the emerging economy. The results showed that macroeconomic variables, including economic growth affected a company's performance. Other researchers Lim and Rice (2016), analyzed the influence of current ratio, inventory turnover, leverage, earning power, net profit margin, sales rate, inflation rate and economic growth on profit growth. Economic growth simultaneously affects the growth of corporate profits.

Research Method
This form of research is categorized as quantitative research with descriptive statistics. The population used in the study is an infrastructure development support company consisting of 44 (forty-three) companies listed on the Indonesia Stock Exchange in 2014-2019. Variables to be examined in the study include Return on Asset (ROA), Tobin's Q, and Price to Book Value (PBV). Roa and PBV data are obtained directly from the annual reports of each selected company. As for Tobin's Q, data processing is done using the help of Microsoft Excel. The data that will be studied consists of 44 companies in 6 periods so that the sample population is 264.
Data obtained from the Indonesia Stock Exchange (IDX) is from www.IDX.co.id and www.lembarsaham.com. Data processing analysis methods using multiple regression analysis to test hypotheses. The regression process will be done with SPSS 21 software.
Infrastructure support companies listed on the Indonesia Stock Exchange for the period 2014-2016 that report annual financial statements are:

Results
Before the multiple linear regression test has been done the classical assumption test but for the tobin and pbv variables do not meet the classical assumption criteria. So in this study will discuss the regression model with ROA as the dependent variable.

Goodness of Fit Test
The F test is used to determine whether independent variables together (simultaneously) have a significant effect on dependent variables. The test results of the influence of variables in infrastructure, inflation and economic growth simultaneously on the performance / ROA of the company can be seen in the SPSS output table above. The table above shows that the f score numeral value of 5,409 f score results are consulted with ftable with a significance level of 5% (0.05). This indicates that f calculates the > f of the table (5,409 > 2,639) and the degree of significance of the Sig value. 0.001< 0.05 is smaller than 0.05. So it can be concluded that Ho was rejected and Ha accepted, meaning that there is a significant influence between infrastructure variables, inflation and economic growth simultaneously on ROA (company performance). These results are in line with research (Zulfiqar & Din, 2015), which found that simultaneously inflation and interest rates positively influence a company's value as measured by ROA (Return on Assets).

T test
The t test is used to determine whether independent variables partially affect dependent variables. In this test using a sample of n = 264 and the number of variables k = 4 with a two-way test so that the significant number of 2 sides is 0.025, then (df = n-k) so that the df value of 264 -4 = 260 3.2.1. Based on Significance Value (Sig.) Based on the table above, the value of significance (Sig.) of infrastructure variables (X1), inflation (X2) and economic growth (X3) is 0.000; 0,000 and 0.331. Because of sig value. 0.000 ; 0,000 < probability of 0.05, it can be concluded that Ha is accepted means that infrastructure variables and inflation significantly affect ROA (company performance). While the value of economic growth significance (X3) > probability of 0.05, economic growth has no significant effect on ROA.

a) The influence of infrastructure on ROA (company performance).
Based on the table above, the t score value of -4.063 shows that the value of t score> ttable 3,182 can be concluded H0 rejected and Ha accepted. This means that infrastructure variables partially have a significant negative influence on ROA (company performance).

b) The Effect of Inflation on ROA (company performance).
Based on the table above can be obtained t score value of 3,277. This indicates that the value of t score > t table 3,562 shows that H0 was rejected and Ha was accepted. This means that partial inflation variables have a significant positive influence on ROA (company performance). This study is different from previous studies (Anugrah et al., 2020) and (Olalere et al., 2017). The results explained that inflation has no partial and simultaneous influence on profitability.

c) The Effect of Economic Growth on ROA (company performance).
Based on the table above can be obtained t score value of -0.975. This indicates that the value of t score < t table 3,182 shows that H0 was accepted and Ha was rejected. This means that partial economic growth variables do not have a significant effect on the performance / ROA of the company. This research is supported by research (Anugrah et al., 2020). The results explained that economic growth has no partial effect on profitability. Olalere et al., (2017) under "Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Nigeria." The results showed that economic growth did not influence profitability as measured by ROA (Return on Assets).

The effect of infrastructure development on the company's performance
The test results as presented in table 2 show that infrastructure development has a significant negative effect on the company's performance (ROA), so it can be concluded that the higher government spending in infrastructure, the ROA will fall. Conversely, the lower government spending in infrastructure, roa will rise. In the opinion of researchers, this is possible because: 1. Infrastructure development carried out by the Indonesian government in the procurement process using the auction/tender mechanism so that with the auction process creates a perfect competition market where construction providers will try to offer the lowest price, so that the continued effect is likely to affect the opportunities of supporting companies in the performance of generating turnover and profit. 2. The sample studied is a supporting company, both a material provider company and an infrastructure development service provider. The researcher's hypothesis focuses on the opportunity for these companies to absorb the infrastructure budget into turnover and profits, but the results show that government infrastructure development activities actually have a significant negative effect, this means that government infrastructure development activities may have a positive effect on the performance of other companies whose business processes are not related to infrastructure development but are very dependent on infrastructure development. The availability of reliable infrastructure.
This research is different from research conducted by (Kasper, 2015), stating that infrastructure development has no effect on the value of the company as measured by ROA (Return of Assets), because the company's performance is influenced by several variables such as company characteristic variables, state characteristic variables and regulatory and competition variables (sector characteristic variables).

Effect of inflation on a company's performance
The test results as presented in table 2 show that inflation has a significant positive effect on the company's performance, meaning that inflation has a positive relationship to ROA, so that the company's performance as an implementation of the company's fundamentals is affected by inflation. This is because stable inflation and low tends to increase company sales, which ultimately results in the company's profit increases. Increased profitability of the company increases the value of the company. So it can be concluded that inflation becomes an essential factor in investors' consideration in making investments. Therefore, investors can make inflation as a reference in assessing the company's outlook.