THE EFFECT OF LIQUIDITY, LEVERAGE, AND INFLATION ON PROFITABILITY (Case Study in Construction and Building Companies Listed on the Indonesia Stock Exchange)
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Date
2020
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Journal ISSN
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Publisher
Solid State Technology Volume: 63 Issue: 4
Abstract
This study aims to determine the effect of leverage liquidity and inflation on profitability. This
research was conducted on 9 companies in the construction and building sub-sector listed on
the Indonesia Stock Exchange for the 2014-2018 period. The research method of verification
with a population quantitative approach in this study is construction and building companies
listed on the Indonesia Stock Exchange. The number of samples is 9 companies and a
population of 18 companies. The method used is a purposive sampling method, data
processing using the program Eviews'9. Statistical data analysis was used by using the
classical assumption test, normality test, multicollinearity test, and hypothesis testing. Based
on the results of this study it can be concluded that partially the Current Ration variables
have a significant effect on ROE. Meanwhile, the Debt Equity Ratio variable has no
significant effect on ROE and the Consumer Price Index has a significant effect on ROE. The
results of this research are expected to have an impact on the company, especially the
construction sector in increasing profitability. The company should see liquidity and inflation
which affect company profits. Profitability fluctuations that occur in this study are mostly
caused by decreased profits experienced by the company.
Description
Keywords
Profitability, Leverage, Inflation, Liquidity