ETIKONOMI
Vol 19, No 2 (2020)

Effects of Leverage, Liquidity, and Profitability on The Rating of Sukuk

Dede Nurohman (FEBI IAIN Tulungagung)
Ilma Mufidatul Lutfiana (FEBI IAIN Tulungagung)
Novi Khoiriawati (FEBI IAIN Tulungagung)



Article Info

Publish Date
08 Oct 2020

Abstract

The rating of Sukuk becomes the reflection of the capital markets' activities. The better rating of Sukuk, the more investor is interested in purchasing a Sukuk. This study aimed to examine the effects of leverage, liquidity, and profitability on Sukuk's rating. The technique of data analysis employed was ordinal logistic regression. The research result revealed that the leverage and liquidity affected the Sukuk. Meanwhile, the profitability did not affect the rating of Sukuk. The test result simultaneously showed that the leverage variable and liquidity affected the Sukuk rating. Overall, this study's research result supported the previous research that discovered the impacts of leverage and liquidity variables on Sukuk's rating. The implication is that companies should improve their leverage and liquidity performance to improve the bond rating.JEL Classifications: G1How to Cite:Nurohman, D., Lutfiana, I. M., & Khoiriawati, N. (2020). Effects of Leverage, Liquidity, and Profitability on The Rating of Sukuk. Etikonomi: Jurnal Ekonomi, 19(2), 299-310. https://doi.org/10.15408/etk.v19i2.16274.

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Journal Info

Abbrev

etikonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Etikonomi is a peer-reviewed journal on Economics, Business and Management by Faculty of Economic and Business State Islamic University (UIN) Syarif Hidayatullah Jakarta. FOCUS This journal focused on economics, business, and management studies and present developments through the publication of ...