The Effect of Leverage, Sales Growth and Company Size on Profitability (Study on Automotive and Component Companies Listed on the Indonesia Stock Exchange)


Authors : Ahmad Wandri; Defri; Dewi Rahmayanti ; Yusnita M. Goretty Sikaraja; Anne Putri

Volume/Issue : Volume 5 - 2020, Issue 12 - December

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/35e81tt

Abstract : - The purpose of this study was to determine the effect of leverage, sales growth, and company size on profitability in automotive companies and components listed on the Indonesia Stock Exchange from 2014 to 2018. The number of samples studied in this study were 65 samples consisting of 13 companies with 5 research periods. This study uses multiple linear regression as an analysis tool with the Eviews 9.0 program to test the hypothesis. The research results prove that leverage has a negative and significant effect on profitability, sales growth has no effect on profitability and firm size has no effect on company profitability. Leverage variables, sales growth, and company size affect profitability amounting to 49.92% while the remaining 50.08% is influenced by variables other than the variables under study.

Keywords : Leverage, Sales Growth, Company Size, Profitability.

- The purpose of this study was to determine the effect of leverage, sales growth, and company size on profitability in automotive companies and components listed on the Indonesia Stock Exchange from 2014 to 2018. The number of samples studied in this study were 65 samples consisting of 13 companies with 5 research periods. This study uses multiple linear regression as an analysis tool with the Eviews 9.0 program to test the hypothesis. The research results prove that leverage has a negative and significant effect on profitability, sales growth has no effect on profitability and firm size has no effect on company profitability. Leverage variables, sales growth, and company size affect profitability amounting to 49.92% while the remaining 50.08% is influenced by variables other than the variables under study.

Keywords : Leverage, Sales Growth, Company Size, Profitability.

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