The Effect of Capital Structure, Sales Growth, and Liquidity on Profitability with Firm Size as A Moderating Variable
Abstract
This study aims to analyze the effect of capital structure, measured by the Debt-to-Equity Ratio (DER), sales growth, and liquidity, measured by the Current Ratio (CR), on profitability, measured by the Return on Assets (ROA), with firm size serving as a moderating variable. The sampling technique employed in this study was purposive sampling, resulting in a final sample of 13 companies. The data used are secondary data obtained from the official website of the Indonesia Stock Exchange (IDX). This research is a quantitative study employing moderation regression analysis. The results indicate that capital structure and liquidity have a negative and significant impact on profitability, whereas sales growth has a negative but insignificant effect. Furthermore, firm size can strengthen the effect of capital structure and liquidity on profitability, whereas it does not moderate the impact of sales growth on profitability.
Keywords
References
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DOI: https://doi.org/10.17509/jbme.v10i3.92075
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