THE INFLUENCE OF PROFITABILITY, LIQUIDITY, LEVERAGE AND ACTIVITY RATIO ON PROFIT GROWTH WITH MANAGERIAL OWNERSHIP AS MODERATING VARIABLE AT AUTOMOTIVE AND COMPONENT COMPANIES LISTED IN THE INDONESIA STOCK EXCHANGE

Bangun, yulia fransiska Br

International Journal of Public Budgeting, Accounting and Finance
Vol 1 No 4 (2018): Journal of public Budgeting, Accounting and Finance

The objective of the research was to find out and to analyze the influence of profitability, liquidity, leverage, and activity ratio on profit growth with managerial ownership as moderating variable. The research used associative causal method. The population was 60 automotive and component companies listed in the Indonesia Stock Exchange in the period of 2012-2016, and all of them were used as the samples, taken by using census sampling technique. The data were analyzed by using multiple linear regression analysis and absolute deviation test. The result of the research showed that profitability and activity ratio had positive and significant influence on profit growth, while liquidity and average did not have any significant influence on profit growth. Managerial ownership could not moderate the correlation of profitability, liquidity, leverage, and activity ratio with profit growth in automotive and component companies listed in the Indonesia Stock Exchange.