Determinants of the Leverage in Companies of State-Owned Enterprise (Soe) Listed on the Indonesia Stock Exchange

Abstract

This study analyzes the Determinants of Leverage of BUMN companies listed on the Indonesia Stock Exchange by testing 4 fundamental factors, namely Firm Size, Profitability, Asset Tangibility and Tobin's Q. The sample in this study is 15 BUMN companies listed on the Indonesia Stock Exchange for the period 2016-2021. Data were analyzed using panel data regression. Based on the results of the analysis, the direct effect is concluded that 1) Firm Size has a positive and significant effect on Leverage; 2) Profitability has a negative and significant effect on Leverage; 3) Asset Tangibility has a positive and significant effect on Leverage; 4) Tobin's Q has a negative and insignificant effect on Leverage; 5) Firm Size, Profitability, Asset Tangibility and Tobin's Q simultaneously have a positive and significant effect on the Leverge of BUMN companies listed on the Indonesia Stock Exchange for the 2016-2021 period.
 
 Keywords: Leverage, Firm Size, Profitability, Asset Tangibility, Tobin's Q

The Influence Of Firm Size, Leverage, Liquidity, Cash Turnover On Profitability

“…Febriani et al, 2023;Ramli, 2019a;Salma & Ramli, 2023). The profit growth obtained by a company cannot be separated from financial performance (Wahyuni et al, 2022) . The financial analysis tool used is financial ratios to compare figures from estimates originating from the income statement and balance sheet (Chandra et al, 2019;Khasanah et al, 2021;Mahaputra, 2012;Ramli, 2020a;Sukarno et al, 2020;.…”