PENGARUH LEVERAGE, FIRM SIZE DAN LIKUIDITAS TERHADAP PROFITABILITAS PADA PERUSAHAAN PERBANKAN

Abstract

This research aimed to find out whether leverage, firm size, and liquidity affected a company’s profitability. The leverage was measured by Debt to Equity Ratio (DER), firm size was measured by Ln (Total Assets), liquidity was measured by Loan to Deposit Ratio (LDR), and profitability was measured by Return On Assets (ROA). Moreover, the research was quantitative. The population was all banking companies listed on the Indonesia Stock Exchange (IDX) during the observation period of 2019-2021. The data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 90 samples from 30 banking companies. Furthermore, the data were secondary. The data analysis technique used multiple linear regression with SPSS 25. The result of the hypothesis showed that: (a) leverage had a negative effect on profitability. It meant H1 was accepted; (b) firm size had a positive but insignificant effect on profitability. This meant H2 was rejected; (c) and liquidity had a negative and insignificant effect on profitability. In other words, H3 was rejected.