The Effect Of Budgetting Effectiveness On The Financial Performance Of The Textile Unit At The Bandung Textile Enterprise

Abstract

This study investigates how the financial performance of the Textile Unit of Balai Besar Tekstil (BBT) Bandung is affected by budgeting effectiveness. This research was conducted using a quantitative method using descriptive and verification approaches. This study involved 58 employees, all of whom were sampled using a saturated or census sampling technique. Data were collected using a five-point Likert scale questionnaire and analyzed using validity, reliability, descriptive statistical analysis, normality, simple linear regression analysis, t-test, and coefficient of determination (R2). All of this was done using the IBM SPSS statistical program. Each component of the instrument was declared valid and reliable, according to the research results. H0 was rejected and H1 was accepted because both variables Budgeting Effectiveness and Financial Performance were in the Good category, with the percentage of score achievement of 65.57% and 65.93%, respectively. The t-test results showed that Budgeting Effectiveness had a positive and significant impact on Financial Performance (t count 6.219 > t table 2.003; Sig. 0.000 < 0.05). Budgeting effectiveness contributed 40.9% to financial performance, according to the coefficient of determination (R2) of 0.409. Other factors outside the study contributed 59.1%.