IJRR

International Journal of Research and Review

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Research Paper

Year: 2023 | Month: February | Volume: 10 | Issue: 2 | Pages: 742-752

DOI: https://doi.org/10.52403/ijrr.20230290

The Effect of Profitability, Liquidity, and Leverage on Profit Growth with Managerial Ownership as a Moderating Variable in Automotive and Component Companies Listed on the Indonesia Stock Exchange

Mutiara Pulungan1, Azhar Maksum2, Tarmizi3

1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia

Corresponding Author: Mutiara Pulungan

ABSTRACT

This study aims to determine and analyze the effects of profitability, liquidity, and leverage on profit growth with managerial ownership as a moderating variable in automotive companies and components listed on the Indonesia Stock Exchange. Research Period 2017-2021, there are 12 companies. This type of research is causal associative. The population in this study is Automotive companies and components listed on the Indonesia Stock Exchange. The sampling method is a census, so the number of samples used is 60 research sample data. The data analysis method uses SPSS 23. The results showed that profit growth while liquidity and leverage had no significant effect on profit growth in automotive companies and components listed on the Indonesia Stock Exchange. Profitability, liquidity, and leverage significantly affect profit growth in automotive companies and components listed on the Indonesia Stock Exchange. Managerial ownership can moderate the relationship between profitability, to profit growth. In contrast, managerial ownership cannot moderate the relationship between liquidity and leverage on profit growth in automotive companies and components listed on the Indonesian Stock Exchange.

Keywords: Profitability, Liquidity, Leverage, Profit growth, Managerial Ownership

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