Sanjaya, Nori Alfiani
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THE DETERMINANTS OF PROFIT CHANGE IN MANUFACTURING COMPANIES AT THE INDONESIAN STOCK EXCHANGE Nusbantoro, Ariwan Joko; Utami, Elok Sri; Sanjaya, Nori Alfiani
Review of Management and Entrepreneurship Vol. 2 No. 1 (2018): Review of Management and Entrepreneurship
Publisher : International Business Management - Universitas Ciputra

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (134.007 KB) | DOI: 10.37715/rme.v2i1.950

Abstract

This study examines the determinants of profit change of companies in the manufacturing sector listed at the Indonesia Stock Exchange. The independent variables include working capital ratio, time interest earned ratio, gross profit ratio, and firm size. The data are extracted from the companies’ financial statements covering a period from 2012 to 2015. A total of 83 companies met the sample selection criteria. Results using multiple linear regression analysis show that working capital ratio and gross profit ratio both have significant negative effect on profit change, the ratio of interest payment has no positive effect on profit change, and firm size has no significant effect on profit change.