JASS (Journal of Accounting for Sustainable Society)
Vol 2 No 02 (2020): VOL 02 NO 02 Tahun 2020

THE EFFECT OF PRODUCT DIVERSIFICATION STRATEGY, FINANCIAL LEVERAGE, FIRM SIZE,AND CAPITAL STRUCTURE ON PROFITABILITY

Destya Aida Sofiatin (STIE Sutaatmadja)
Trisandi Eka Putri (STIE Sutaatmadja)
Sri Mulyati (STIE Sutaatmadja)



Article Info

Publish Date
31 Mar 2021

Abstract

This study aims to determine the effect of product diversification strategies, financial leverage, company size, and capital structure on profitability (Case Study of Consumer Goods Industry Sector Companies listed on the Indonesia Stock Exchange for the 2014-2018 period). In this study, using purposive sampling method, and samples that fit the criteria were 32 companies, so that 160 data were obtained on consumer goods industrial companies for the period 2014-2018. And the data were analyzed using Eviews 9 program. The method of analysis used in this research is descriptive statistical analysis, panel regression analysis and classical assumption test. The results showed the coefficient of determination R2 was 14% and the remaining 86% was explained by other variables. Partial results (t test), product diversification strategy variables and financial leverage have a positive and significant effect on profitability, firm size has a negative and significant effect on profitability. Meanwhile, capital structure has no significant effect on profitability. The simultaneous test results (F test) show that the product diversification strategy, financial leverage, company size and capital structure simultaneously affect profitability.

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Journal Info

Abbrev

jass

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Diterbitkan oleh Program Studi Akuntansi Sekolah Tinggi Ilmu Ekonomi Sutaatmadja. Dengan tujuan: 1) Menjadi media publikasi yang terpercaya dalam penyebarluasan ilmu akuntansi. 2) Menjadi media dokumentasi pemikiran yang berbasis pada ilmu akuntansi. 3) Menjadi media yang akan menunjang pengembangan ...