Open AccessDebt Financing and Firm Performance on Manufacturing Companies Listed on the IDX
Author(s) -
Dian Hayati,
Maisya Liztiara,
Susy Muchtar
Publication year - 2022
Publication title -
jurnal ekonomi
Language(s) - English
Resource type - Journals
ISSN - 2580-4901
DOI - 10.24912/je.v27i1.856
Subject(s) - profit margin , return on assets , business , debt ratio , operating margin , stock exchange , panel data , net interest margin , debt , debt to equity ratio , manufacturing sector , monetary economics , nonprobability sampling , finance , financial system , economics , econometrics , labour economics , population , demography , sociology
In this period, the manufacturing sector itself recorded a growth of 6.91% despite being under pressure due to the COVID-19 pandemic. Therefore, this study was conducted to determine the effect of debt financing and firm performance on manufacturing companies. The sample used was 21 companies listed on the Indonesia Stock Exchange for the period 2016 - 2020. The sampling technique used was purposive sampling and the analytical method used was panel data regression. The results of this study state that the Short term debt ratio (STDA) has no effect on Return on Assets , Long term debt ratio (LTDA) has a negative and significant effect on Return on assets, Sales Growth (GROWTH) has a positive and significant effect on Return on assets, Short term debt ratio (STDA) has no effect on Net Profit Margin, Long term debt ratio (LTDA) has a negative and significant effect on Net Profit Margin , Sales Growth (GROWTH) has a positive and significant effect on Net Profit Margin.