e-Jurnal Apresiasi Ekonomi
Vol 14, No 1 (2026)

THE EFFECT OF FINANCIAL LEVERAGE ON FINANCIAL PROFITABILITY: A STUDY OF NON-FINANCIAL INSTITUTIONS LISTED ON THE INDONESIAN STOCK EXCHANGE

Sirait, Eugenia Chacita (Unknown)
Pangestuti, Irene Rini Demi (Unknown)



Article Info

Publish Date
12 Feb 2026

Abstract

This study aims to reveal the effect of Financial Leverage on Financial Profitability in non-financial companies listed on the Indonesia Stock Exchange. The population of this study is non-financial companies listed on the Indonesia Stock Exchange that attach their financial reports publicly from 2018-2023. The data used in this study comes from Bloomberg data from the Faculty of Economics and Business, Diponegoro University, Semarang. The number of samples based on the purposive sampling method is 68 companies and with a sample of 408. The analysis in this study is multiple linear regression analysis using IBM SPSS 25. The findings in this study indicate that Equity Multiplier, Interest Coverage ratio, Degree of Financial Leverage, have no effect on ROA and ROE, Fixed Charge Coverage ratio and Capitalization Ratio have a positive effect on ROA and ROE, Debt to EBITDA has a negative effect on ROA and ROE. Keywords: Financial Leverage, Profitability, Indonesia Stock Exchange

Copyrights © 2026






Journal Info

Abbrev

apresiasiekonomi

Publisher

Subject

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

Description

topics that will be published in this journal are: 1. Development theory and application of management science; 2. Study of entrepreneurship and entrepreneurship development; 3. Development and research on applying the theory of business science 4. Community economic development. But the other ...