Open AccessThe Effect of Profitability, Liquidity, Maturity And Assurance Against Highest Bond Ranking In Financial Sector In Indonesia Stock Exchange
Author(s) -
Dinda Aziiza Hasan,
I Made Dana
Publication year - 2017
Publication title -
e-jurnal manajemen
Language(s) - English
Resource type - Journals
ISSN - 2302-8912
DOI - 10.24843/ejmunud.2018.v7.i02.p04
Subject(s) - stock exchange , market liquidity , profitability index , bond , nonprobability sampling , business , maturity (psychological) , financial system , bond credit rating , finance , accounting , credit risk , psychology , population , developmental psychology , demography , sociology , credit reference
One form of funding that can be done by the company is to issue bonds. The purpose of the research is to know the significance of the effect of profitability, liquidity, maturity and guarantees to the rating of bonds in the financial sector in Indonesia Stock Exchange. The type of data used is secondary data of each financial sector company listed on the Indonesia Stock Exchange and obtained from www.idx.co.id. Sampling is done by purposive sampling. The number of samples taken is as much as 20 bonds of financial sector companies in Indonesia Stock Exchange period 2014-2016, via purposive sampling method. The analysis technique used is logistic regression analysis and data processing using SPSS 13 for windows. The result of analysis shows that profitability, maturity and guarantee have positive and significant influence to bond rating, while liquidity has negative and significant effect to bond rating. The company should be able to increase the company's liquidity value in order for the company to obtain investment grade. Investors are more interested in investment-grade bonds.