PENGARUH KEPEMILIKAN INSTITUSIONAL, FINANCIAL LEVERAGE, DAN SIKLUS OPERASI TERHADAP PERSISTENSI LABA

Abstract

This research aimed to examine and analyze the effect of institusional ownership, financial leverage, and operation cycle on the profit persistence of the pharmaceutical sector companies listed on the Indonesia Stock Exchange (IDX). The population was pharmaceutical sector companies listed on IDX.Moreover, the independent variables were institusional ownership, financial leverage, and operation cycle. While the dependent variable was Profit persistence. Furthermore, the period was 3 years in 2020-2022. The data collection technique used purposive sampling with the criteria given, in wich the companies who had ever published continuity reports and annual reports continuously during 2020-2022. In the line with that, there were 14 pharmaceutical sector companies as the sample. Additionally, the data analysis technique used multiple linear regression. The result showed that both institutional ownership and financial leverage had a positiveeffect on profit persistence. On the other hand, the operation cycle had a negative effect on profit persistence.