The Influence Of Debt On Profitability With Firm Size And Sales Growth As Control Variables

Qurochman, Arief Nurdiannova (2022) The Influence Of Debt On Profitability With Firm Size And Sales Growth As Control Variables. Jurnal Mantik, 6 (2). pp. 2463-2470.

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Abstract

This study aims to determine the effect of debt on profitability by using two control variables, namely Firm Size (FS) and Sales Growth (SG) in manufacturing companies listed on the Indonesia Stock Exchange. Debt is proxied by Short-Term Debt (STD), Long-Term Debt (LTD), and Total Debt (TD). Meanwhile, profitability is proxied by Return On Equity (ROE). This study uses a quantitative approach. The research population is all manufacturing companies listed on the Indonesia Stock Exchange during 2019 - 2021. The sample obtained is based on purposive sampling with 73 companies. The data analysis technique uses multiple linear regression with two models. Model 1 is regression using short term debt, long term debt, and control variables. Meanwhile, model 2 is a regression of the total debt and control variables. Based on the partial t test results, short term debt has no effect on ROE. Long term debt and total debt variables have a negative and significant effect on ROE. The F test of model 1 shows that the variables of Short Term Debt, Long Term Debt, Firm Size, and Sales Growth simultaneously have an effect on ROE. Meanwhile, the F test model 2 shows that the variables of Total Debt, Firm Size, and Sales Growth simultaneously have an effect on ROE.

Item Type:	Article
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Program Studi > S1 Akuntansi
Depositing User:	Ismi Putri Merdekawati
Date Deposited:	04 Apr 2024 07:27
Last Modified:	04 Apr 2024 07:27
URI:	http://repository.stieyapan.ac.id/id/eprint/182

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