<![CDATA[This study analyzes the dynamics of profitability for Indonesian public companies, focusing on the persistence of profits and the roles of leverage and firm size. Using a dynamic panel data analysis with a System GMM estimator on data from 44 firms over 24 years, the findings reveal a lack of profitability persistence, indicating that high profits are short-lived in this competitive market. Furthermore, financial leverage has a strong negative impact on profitability, while firm size shows no significant effect. These results suggest that managers should focus on continuous innovation and maintain a conservative debt policy, and that investors should not rely on past performance as a predictor of future returns. The study provides evidence that sustainable advantage in Indonesia stems from factors beyond mere scale or financial leverage.]]>
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