The Effect of Financial Ratio on Profit Growth with Company Value as a Moderating Variable in Automotive Companies and Components Listed on the Indonesia Stock Exchange

  • Ester Ester Universitas Prima Indonesia
  • Nagian Toni Universitas Prima, Indonesia
  • Sauh Hwee Teng Universitas Prima, Indonesia
  • Galumbang Hutagalung Universitas Prima, Indonesia
DOI: https://doi.org/10.47814/ijssrr.v5i9.436
Keywords: Profitability; Liquidity Leverage Activity Ratio; Firm Value; Profit Growth

Abstract

The purpose of this study is to determine and analyze the effect of financial ratios on profit growth in automotive and component companies listed on the Indonesia stock exchange, with firm value acting as a moderating variable. There were 12 companies during the 2015-2020 research period. This type of research is known as causal associative research. In this study, the population consists of automotive and component companies listed on the Indonesia Stock Exchange. The census sampling method was used, so 72 research sample data were collected. Using eviews 10 for data analysis. Profitability and liquidity were found to have a significant partial effect on profit growth. Leverage and activity ratios, on the other hand, had no significant impact on profit growth in automotive and component companies listed on the Indonesian stock exchange between 2015 and 2020. In the 2015-2020 period, profitability, liquidity, and activity leverage ratios all have a significant impact on profit growth in automotive and component companies listed on the Indonesian stock exchange. Profit growth is affected by profitability, leveraged liquidity, and activity ratios.

Published
2022-09-13
How to Cite
Ester, E., Toni, N., Teng, S. H., & Hutagalung, G. (2022). The Effect of Financial Ratio on Profit Growth with Company Value as a Moderating Variable in Automotive Companies and Components Listed on the Indonesia Stock Exchange. International Journal of Social Science Research and Review, 5(9), 242-255. https://doi.org/10.47814/ijssrr.v5i9.436
Issue
Vol 5 No 9 (2022): IJSSRR VOL 5 NO 9 2022 SEPTEMBER
Section
Main Articles

Copyright (c) 2022 Ester Ester, Nagian Toni, Sauh Hwee Teng, Galumbang Hutagalung

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