International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC)
Vol. 2 No. 6 (2024): December

FINANCIAL LEVERAGE STRATEGY TO IMPROVE COMPANY STOCK PERFORMANCE IN INDONESIA

Hayyin Isnaini (Unknown)
Murtanto (Unknown)



Article Info

Publish Date
31 Dec 2024

Abstract

This research aims to analyze and explore strategies for utilizing financial leverage ratios in improving the performance of company shares traded on the IDX. The sampling technique uses purposive sampling using a cross section data approach of 105 observation sample data from property & real estate sector companies listed on the IDX with the observation period 2020-2023. Meanwhile, the analysis technique uses structural equation modeling. The research results show that the use of financial leverage by companies in the property & real estate sector shows that they are not capable enough to improve the performance of company shares in the secondary market. However, the EVA variable can explain variations in its influence on stock returns indirectly through financial leverage. This indicates that the use of financial leverage is proven to be able to improve current year performance as reflected in the EVA ratio value. Interestingly, company age can also explain variations in its influence on company stock performance. This means that the longer the company is, the greater the opportunity for the company to improve its stock performance.

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Journal Info

Abbrev

go

Publisher

Subject

Humanities Economics, Econometrics & Finance Education Law, Crime, Criminology & Criminal Justice Social Sciences

Description

International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC) is an open access, peer-reviewed, and refereed journal published by PT. ZILLZELL MEDIA PRIMA. The main objective of IJAMESC is to provide an intellectual platform for the international scholars. IJAMESC aims to ...