PENGARUH INVESTMENT OPPORTUNITY SET, PROFITABILITAS, LIKUIDITAS, DAN LEVERAGE TERHADAP KUALITAS LABA

Abstract

This research aimed to examine the effect of the Investment Opportunity Set (IOS), profitability, liquidity, and leverage on the profit quality. Investment Opportunity Set (IOS) was measured by the Market book value of asset ratio, profitability was measured by Return on Asset (ROA), liquidity was measured by Current Ratio (CR), and leverage was measured by Debt to Equity Ratio (DER). This research was quantitative. Moreover, the population was 13 Transportation companies listed on the Indonesia Stock Exchange (IDX) 2017- 2021. The data were annual reports from the official website Indonesia Stock Exchange. Furthermore, the data collection technique used purposive sampling with 2 determined criteria. In line with that, there were 8 companies as the sample during 5 years. In total, there were 40 data samples. Additionally, the data analysis technique used multiple linear regression with SPSS. The result indicated that both Investment Opportunity Set (IOS) and liquidity did not affect the profit quality. Meanwhile, profitability, as well as leverage, affected the profit quality.