Determinants of Leverage in Manufacturing Companies: An Empirical Study in Indonesia
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This study aims to examine the determinants of leverage in manufacturing companies listed on the Indonesia StockExchange.The investigation was carried out using panel data on manufacturing companies listed on the IndonesiaStock Exchange for the 2019-2021 period.The leverage variable in this study uses the debt-to-equity ratio (DER) asthe dependent variable.The independent variable is profitability as measured by return on assets (ROA), liquidity ismeasured by the current ratio (CR) and operating assets is measured by operating assets turnover (OATO), whilecompany size as a control variable is measured by the natural log of total assets.The data collection method usedpurposive sampling method to select data that met certain criteria according to research needs.Panel data analysisusingeviews software with multiple regression analysis model.The results of the analysis show that liquidity andoperating assets have a negative effect on leverage, while return on assets and firm size have no effect, so firm sizedoes not act as a controlling variable.
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