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*Corresponding Author E-mail: donna_kartiningsih@sbm-itb.ac.id © 2019 IJBS, All rights reserved. Copyright © 2019 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. INTRODUCTION The rapid development of the business world makes the company's needs accounting even higher, because accounting is an information system that gives report about the activities and performance of a company in one period. Companies that have go-public have an obligation to present their inancial reports in accordance with the requirements set by the authorized institutions in Indonesia, namely OJK (Otorisasi Jasa Keuangan). Financial reports are useful for providing information to the parties that need, such as internal parties to make decisions in running the company, external parties such as investors to help provide information in making decisions whether to invest in the company or not (Belkaoui, 2006). According to Belkaoui (2006) the purpose of inancial statements is to convey information whether the management of the company has used capital effectively to achieve the company's main objectives. One of the important information contained in inancial report is information about pro its. Pro itability can show how well a company's ability to generate pro its. Pro itability is used to measure the ef iciency of the capital in a company by comparing between the pro it with the capital used in operations. The company always expects high pro itability and increase every year. A good company, if the company can operate stably over a long period of time so that they will International Journal of Business Studies Vol. 3 No. 1 ( February 2019) 33 not have dif iculty on returning their debts, both short-term debt and long-term debt. Therefore, the company must know the factors that can affect the pro itability of the company, in this research the factors that can affect the pro itability of the company are the irm characteristics, which proxied by irm age, irm size, sales growth, liquidity, and leverage. This research based on research by Charles, Ahmed, and Joshua (2018), Effect of Firm Characteristics on Pro itability of Listed Consumer Goods Companies in Nigeria. That research found that irm size, sales growth and leverage have signi icant effects on pro itability. In contrast, irm age and liquidity are not signi icantly affecting pro itability of listed consumer goods companies in Nigeria. The Research by Miswanto, Abdullah and Suparti (2017) they found that Working Capital Turnover (WCT) has a positive and signi icant effect on pro itability. The growth of the Company which is proxied by sales growth has negative and insigni icant effect on pro itability. irm size has a positive and signi icant effect on pro itability. Another research by Putra and Badjra (2015) about the effect of leverage, sales growth and company size on pro itability in food and beverage industry companies listed on IDX for the period 2008-2013. This research found that leverage has negative and signi icant effect on pro itability, sales growth has negative but not signi icant effect on pro itability, and the size of the company has negative but not signi icant to pro itability. The results of previous research indicate difference result, it became of interest to the researchers to examine the effect of these irm characteristics proxied by irm age, irm size, liquidity, sales growth and leverage on the pro itability in 2 popular FMCG companies in Indonesia, PT. Indofood CBP Sukses Makmur Tbk and PT. Mayora Indah Tbk from 2011-2017. This research is organized into ive sections. Section one captures the introduction, section two review of related literature about the theoretical basis, pro itability and irm characteristics, section three discuss the research methodology, section four discuss the inding result and analysis, section ive captures the conclusion of this research. LITERATURE REVIEW Resource based Theory This research is support by Resource based Theory proposed by Wernerfelt in 1984. According to Wernerfelt (1984) in Wahyuni and Pujiharto (2015) explained that in the view of Resource Based Theory, a company gain competitive advantage and good inancial performance by owning, mastering and utilizing important strategic assets, including the tangible assets, the intangible assets and capabilities of the company itself. If the company can utilize the resources maximumly, the company will have a competitive advantage and be able to compete with its competitors. Pro itability Pro itability is the company's ability to generate pro its at certain periods. The company's ability to generate pro its in its operations is the main focus in the company's performance appraisal (company fundamental analysis) because the company's pro it is not only an indicator of the company's ability to ful ill its obligations for its funders, but also is the review about the company in the future. Firm Age According to Annisa (2016) Firm age is the length of life of a company that shows that the company still exists, able to compete in the business world and capable maintain the continuity of its business and is part of documentation that shows the purpose of the company. Firm age is calculated from the beginning when the company was founded. Firm Size Firm size is a characteristic of a company within its relationship with the company's structure. Firm size is measured by the natural logarithm of total assets owned by the company. The de inition

Effect of Firm Characteristic to Profitability in PT Indofood Cbp, Sukses Makmur Tbk and PT Mayora Indah Tbk