Journal of Management and Social Sciences
Vol. 2 No. 1 (2023): Februari : Journal of Management and Social Sciences

The Important Evidence of Leverage in Mediating the Effect of Sales Growth and Capital Intensity on Profitability

Sarah Triayuni (Universitas Jenderal Soedirman)
Najmudin (Universitas Jenderal Soedirman)
Rio Dhani Laksana (Universitas Jenderal Soedirman)



Article Info

Publish Date
28 Feb 2023

Abstract

The main goal of this study is to assess the impact of sales growth applying the leverage as mediator factor and capital intensity to profitability. The population of study consist of 41 manufacture corporates registered at the IDX which the observation period during year 2019 to 2020. Based on the data analysis and result of study applying Structural Equation Modeling-Partial Least Square or SEM-PLS, the evidence shows that there is no impact significantly from sales growth to profitability. Meanwhile, sales growth has an impact positively to leverage; financial leverage has an impact negatively to profitability; and financial leverage could mediate the effect of sales growth variable to profitability. In addition, capital intensity has an impact negatively to profitability.As the implication, this result recommends that manufacture companies should avoid using debt to finance their operation because it could lead to a decrease in profits.

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Journal Info

Abbrev

Jimas

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences Transportation

Description

Ilmu manajemen Manajemen Manajemen Syariah Administrasi Keuangan (Perkantoran, Pajak, Hotel, Logistik, Dll) Pemasaran Manajemen Transportasi Manajemen Industri Manajemen Informatika Kesekretariatan Ilmu Sosial : Ilmu Komunikasi Jurnalistik Hubungan Masyarakat Periklanan Televisi dan Film Manajemen ...