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The Determinations Of Return On Equity In The Food And Baverage Industry In Indonesia Stock Exchange

Description:

This study aims to determine the influence of Financing Leverage Multiplier (FLM), Total Asset Turnover (TATO), Operating Profit Margin (OPM), Interest Burden (IB), and Tax Burden (TB) toward Return on Equity (ROE). The type of research is explanatory causality and using secondary data. This study set out five years from 2011-2015. Purposive sampling technique used in the sampling and uses 18 companies from all over the food and beverage companies in Indonesia. The 70 data obtained from financial statements at 18 the food and beverage companies. Data analysis with multiple regression, hypotheses test used partial t – test and F – test at level of significance 5% . The results of this study indicate that: partially (1) Financial Leverage Multiplier (FLM) has positif significant influence toward Return on Equiy (ROE), (2) Total Assets Turnover (TATO) has positif significant influence toward Return on Equiy (ROE), (3) Operating Profit Margin (OPM) has positif significant influence toward Return on Equiy (ROE), (4) Interest Burden (IB) have positive significant influence toward Return on Equiy (ROE), and (5) Tax Burden (TB) have negatif influence and insignificant toward Return on Equity.

Author:

  1. Nurjannah Endah Rahayu
  2. Eva Cahaya Reski
  3. Sugiyanto

Source:

International Conference on Recent Innovation 2018[/vc_column_text][/vc_column][/vc_row]