FACTORS AFFECTING PROFITABILITY IN INFRASTRUCTURE COMPANIES LISTED ON IDX
Article Sidebar
Read Counter : 13
Download : 11
Main Article Content
Abstract
This study aims to determine the factors that can affect profitability in infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) during 2020-2022. This research was conducted using three independent variables consisting of company leverage, company size, and company liquidity. The company leverage variable is proxied through the DAR (Debt to Asset Ratio) ratio, the company size variable is proxied through the Log of Total Assets, and the company liquidity variable is proxied through the CR (Current Ratio) ratio. The profitability variable is proxied through the ROA (Return on Asset) ratio. The sample tested in this study was selected by purposive sampling method and the data used was valid data from 19 infrastructure sector companies. Data processing techniques in this study using multiple regression analysis assisted by the SPSS (Statistical Product and Service Solution) program version 27 and Microsoft Excel. The results of the study showed that the leverage variable has a significant negative effect on profitability, the company size variable has a significant positive effect on profitability, and the liquidity variable has no significant effect on profitability. The implication of this research is the need for companies to optimally utilize existing assets and arrange good funding sources so that they can earn profits optimally and can increase the company's profitability value which will provide good signals for investors.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
Alarussi, A. S., & Gao, X. (2021). Determinants of Profitability in Chinese Companies. International Journal of Emerging Markets. 11(8), 442-458.
Alifianda, Randy, and Nurjanti Takarini. 2020. Analisis Profitabilitas Pada Perusahaan Food and Beverages yang Terdaftar di Bursa Efek Indonesia Tahun 2015–2018.Jurnal Ekonomi & Bisnis 1(2):76–83.
Alsharari, N. M., & Alhmoud, T. R. (2019). The Determinants of Profitability in Sharia-Compliant Corporations: Evidence from Jordan. Journal of Islamic Accounting and Business Research, 10(4), 546–564
Binekasri, R. (2023). Erick Thohir Sebut Laba BUMN Rp303 T, Paling Gede Dari Sini. CNBC Indonesia. Retrieved October 18, 2023, from https://www.cnbcindonesia.com/market/20230213133216-17-413322/erick-thohir-sebut-laba-bumn-rp303-t-paling-gede-dari-sini
Camino-Mogro, S., & Bermúdez-Barrezueta, N. (2019). Determinants of Profitability of Life and Non-Life Insurance Companies: Evidence from Ecuador. International Journal of Emerging Markets, 14(5), 831–872.
Chynthiawati, L., & Jonnardi, J. (2022). Pengaruh Profitabilitas, Leverage, Pertumbuhan Perusahaan, dan Likuiditas Terhadap Nilai Perusahaan, Jurnal Multiparadigma Akuntansi, 4(4), 1589–1599.
Fara Zumrotul Mufalichah, I. N. (n.d.). Pengaruh Likuiditas, Leverage, Aktivitas, Ukuran Perusahaan, dan Sales Growth Terhadap Profitabilitas. Jurnal Ilmiah Pendidikan Profesi Guru, 3(2).
Hendrastuti, R., & Harahap, R. F. (2023). Agency theory: Review of the theory and current research. Jurnal Akuntansi Aktual, 10(1), 85.
Jensen, M.C & Meckling, W.H. (1976). Theory of The Firm: Managerial Behaviour, Agency Costs and Ownership Structure, Journal of Financing Economics 3, 305-360
K. Gharaibeh, O., & H. Bani Khaled, M. (2020). Determinants of Profitability in Jordanian Services Companies. Investment Management and Financial Innovations, 17(1), 277–290.
Maria, M., Wiagustini, L. P., & Sedana, I. B. P. (2018). Pengaruh Ukuran Perusahaan, Leverage, dan Liquiditas Terhadap Profitabilitas di Perusahaan Esperanca Timor-Oan (ETO) Dili Timor Leste. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 8(1), 23-40
Maulana, B. D., & Rahayu, Y. (2022). Pengaruh Ukuran Perusahaan, Likuiditas, dan Leverage Terhadap Profitabilitas, Jurnal Riset Akuntansi dan Keuangan 11(11), 1-14.
Modligiani, F., & Miller, M. (1963). Corporate Income Taxes and The Cost of Capital: A Correction. American Economic Review, 53, 433-443.
Moussa, B. (n.d.). The determinants of firm profitability in the Tunisian Stock Exchange. The International Journal of Accounting and Business Society, 31(1), 31-44.
Nanda, S., & Panda, A. K. (2018). The Determinants of Corporate Profitability: An Investigation of Indian Manufacturing Firms. International Journal of Emerging Markets, 13(1), 66–86.
Nuraini, F. D., & Suwaidi, R. A. (2022). Pengaruh Leverage, Likuiditas, dan Ukuran Perusahaan Terhadap Profitabilitas Pada Perusahaan Textile dan Garment Yang Go Public Di Bursa Efek Indonesia. Jurnal Ilmu Manajemen, 11(2), 157-166.
Nurdiana, D. (2018). Pengaruh Ukuran Perusahaan dan Likuiditas Terhadap Profitabilitas. Jurnal Menara Ilmu. 12(6), 77-88.
Pervan, M., Pervan, I., & Ćurak, M. (2019). Determinants of Firm Profitability in the Croatian Manufacturing Industry: Evidence from Dynamic Panel Analysis. Economic Research-Ekonomska Istraživanja, 32(1), 968–981.
Suprapto, Y., & Enjeliana, N. (2021). Pengaruh Firm Size, Liquidity, Leverage, CCC dan Inventory Turnover terhadap Profitabilitas Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia. Conference on Management, Business, Innovation, Education, and Social Science1(1), 2123-2134.
Syahrani, T. (2021). Pengaruh Profitabilitas, Kualitas Audit, Nilai Perusahaan, Dewan Komisaris Independen dan Ukuran Dewan Komisaris Terhadap Manajemen Laba Perusahaan Manufaktur yang Terdaftar di BEI, Jurnal Fairness, 9(1), 45–58.
Umdiana, N., & Claudia, H. (2020). Struktur Modal Melalui Trade Off Theory. Jurnal Akuntansi Kajian Ilmiah Akuntansi (JAK), 7(1), 52.
Wijaya, L. I., Harjono, J. A., & Mahadwartha, P. A. (2022). Determinants of Profitability for Manufacturing Companies in Indonesia 2018-2020. Jurnal Riset Akuntansi dan Keuangan, 10(2), 189-198.
Youssef, I. S., Salloum, C., & Al Sayah, M. (2023). The Determinants of Profitability in Non-Financial UK SMEs. European Business Review, 35(5), 652–671.