Effect of Profit Margin, Turn Over Total Assets, Price Earnings Ratio And Capital Structure to Profitability (Return on Equity) on Companies Listed in Indonesia Stock Exchange in 2013-2015

Budiyono ,

Abstract


This study aimed to determine the effect of the profit margin, total asset turnover, the price earnings ratio and capital structure on profitability (return on equity) companies listed in Indonesia Stock Exchange in 2013-2015. In addition, this study also aims to determine which variables is the most dominant influence on the profitability of the companies listed in Indonesia Stock Exchange in 2013-2015. The theoretical benefits of this research contribute to the development of the theory of financial management. Practical benefits, for companies of this study may provide information to managers in making decisions in order to improve profitability company. For investors / shareholders of the benefits of this research as one material information that could be considered in investing in Indonesia Stock Exchange. Sampling technique in this research is by using purposive sampling. There are several criteria that must be met companies listed in Indonesia Stock Exchange's can be sampled in this study. This research method using multiple linear regression analysis were used to determine the effect of variable profit margin, total asset turnover, the price earnings ratio and capital structure to profitability variable (Return On Equity) simultaneously and partially.

Keywords: profit margin, total asset turnover, the price earnings ratio, capital structure and profitability (Return On Equity).


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References


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