Open AccessAnalysis of financial and non-financial factors affecting bond ratings
Author(s) -
Isti Fadah,
Anis Rahma Ayuningtyas,
Novi Puspitasari,
Istatuk Budy Yuswanto
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/485/1/012019
Subject(s) - bond , market liquidity , population , business , financial ratio , variables , profitability index , leverage (statistics) , finance , econometrics , economics , actuarial science , statistics , mathematics , demography , sociology
The decision to invest in the bond market is in high demand by investors because of their fixed income. Investment in the bond market is slower than investment in stocks. One obstacle to this slow development is that the existing bond market conditions have not been optimized by market participants and the general public’s understanding of the instruments in bonds is still limited. This research was conducted to analyze the financial factors as measured by financial ratios (profitability ratios, growth ratios, leverage ratios, and liquidity ratios) and non-financial factors were measured by the age of bonds and bond guarantees that Affect the rating of the bonds of manufacturing companies in the period 2013-2017. The uniqueness of this research is the use of a balanced variable between internal variables and external variables. Another uniqueness is that this study uses a quick ratio to measure liquidity while many other variables use the current ratio. Selection and population used in this study using all manufacturing companies see that manufacturing companies are dominant companies in Indonesia and manufacturing companies need alternative Reviews their funds for operational activities so that the issuance of bonds is quite large. The research approach used is quantitative. The population in this study was 156 companies and was taken by 13 companies to be used as samples with purposive sampling method. The method of data analysis used in this study is logistic regression. This logistic regression analysis is used to analyze the relationship between Several independent variables with the dependent variable is categorical variables roomates type. The results of this study state that profitability and liquidity variables variables have a positive effect on the bond ratings of manufacturing companies listed on the Indonesia Stock Exchange for the period 2013-2017. While in the growth variables, the variables of leverage, the Age of bonds and bond guarantees have no effect on the bond ratings of manufacturing companies listed on the Indonesia Stock Exchange for the period 2013-2017.