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FACTORS AFFECTING FINANCIAL PERFORMANCE IN TECHNOLOGY COMPANIES Fernando, Hanssen; Yanti, Yanti
International Journal of Application on Economics and Business Vol. 2 No. 3 (2024): Agustus 2024
Publisher : Graduate Program of Universitas Tarumanagara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24912/ijaeb.v2i3.339-348

Abstract

The purpose of this study is to examine the effect of independent variables of leverage (as measured by debt to equity ratio [DER]), firm size (as measured by natural logarithm of total assets), and liquidity (as measured by current ratio [CR]) on financial performance (as measured by return on equity [ROE]). The sample in this study was selected using purposive sampling which resulted in 10 technology companies from 21 technology companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2022 period were used as research objects. This study uses a panel data regression model with a Fixed Effect Model (FEM) approach using Eviews version 12 program. Based on the analysis, the results of this study show that firm size has a positive and significant effect on financial performance, while leverage and liquidity have a positive and insignificant effect on financial performance.