The Effect Of Financial Leverage And Operating Leverage On Company Profitability

Authors

  • Arief Nurdiannova Qurochman Financial Concentration Management Study Program YAPAN College of Economics
  • Arjuna Nur Alfian Syah Putra Financial Concentration Management Study Program YAPAN College of Economics

Keywords:

Financial Leverage, Operating Leverage, Profitability

Abstract

This research aims to analyze the effect of financial leverage (DFL) and operating leverage (DOL) on company profitability (ROE) both simultaneously and partially in banking sub-sector companies listed on the BEI for the 2020-2022 period. This research was conducted using multiple linear regression analysis. Based on the results of the F test, it is known that DFL and DOL simultaneously influence ROE, this is proven by a significance level that is smaller than 0.05, namely 0.023. Based on the results of the t test, it is known that DFL partially has no effect on ROE, this is proven by a significance level greater than 0.05, namely 0.432. Based on the results of the t test, it is also known that DOL partially has a significant negative effect on ROE, this is proven by a significance level that is smaller than 0.05, namely 0.373. The strength of the relationship between the variables DFL, DOL and ROE is shown by the adjusted coefficient of determination (Adjusted R square) which is only 0.137 or 13.7%.

Downloads

Download data is not yet available.

References

Almaqtari, F. A., Al‐Homaidi, E. A., Tabash, M. I., & Farhan, N. H. (2019). The determinants of profitability of Indian commercial banks: A panel data approach. International Journal of Finance & Economics, 24(1), 168–185. https://doi.org/https://doi.org/10.1002/ijfe.1655

Aranda-Usón, A., Portillo-Tarragona, P., Marín-Vinuesa, L. M., & Scarpellini, S. (2019). Financial resources for the circular economy: A perspective from businesses. Sustainability, 11(3), 888. https://doi.org/https://doi.org/10.3390/su11030888

Ayadi, M. A., Ayadi, N., & Trabelsi, S. (2019). Corporate governance, European bank performance and the financial crisis. Managerial Auditing Journal, 34(3), 338–371. https://doi.org/https://doi.org/10.1108/MAJ-11-2017-1704

Berger, A. N., Molyneux, P., & Wilson, J. O. S. (2020). Banks and the real economy: An assessment of the research. Journal of Corporate Finance, 62(6), 101513. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2019.101513

Buallay, A., Fadel, S. M., Alajmi, J., & Saudagaran, S. (2021). Sustainability reporting and bank performance after financial crisis: evidence from developed and developing countries. Competitiveness Review: An International Business Journal, 31(4), 747–770. https://doi.org/https://doi.org/10.1108/CR-04-2019-0040

Cecere, G., Corrocher, N., & Mancusi, M. L. (2020). Financial constraints and public funding of eco-innovation: Empirical evidence from European SMEs. Small Business Economics, 54(1), 285–302. https://doi.org/10.1007/s11187-018-0090-9

Devi, H. P. (2019). Pengaruh Financial Leverage Terhadap Perataan Laba Dimoderasi Firm Size Di Perbankan Indonesia.

Geovannie, H. L. (2016). Pengaruh Pemanfaatan Teknologi Informasi dan Kesesuaian Tugas – Teknologi Informasi terhadap Kinerja Individual Instansi Pemerintahan (Studi Kasus pada Kantor Pelayanan Pajak Pratama Malang Selatan). Jurnal Mahasiswa Perpajakan, 8(1).

Herawati, H. (2019). Pentingnya Laporan Keuangan Untuk Menilai Kinerja Keuangan Perusahaan. JAZ: Jurnal Akuntansi Unihaz, 2(1), 16–25.

Hidayat, T., Permatasari, M., & Suhamdeni, T. (2020). Analisis Pengaruh Rasio Keuangan Terhadap Kondisi Financial Distress Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Bisnis Pelita Bangsa, 5(02), 93–108.

Janah, A. N., & Qurochman, A. N. (2023). PRESENTATION OF FINANCIAL REPORTS BASED ON SAK EMKM AT PT SOLOMON INDO GLOBAL. Jurnal Ekonomi, 12(3), 1685–1690.

Jin, Y., Gao, X., & Wang, M. (2021). The financing efficiency of listed energy conservation and environmental protection firms: evidence and implications for green finance in China. Energy Policy, 153(6), 112254. https://doi.org/https://doi.org/10.1016/j.enpol.2021.112254

Juanaristo, R. K. E., & Astika, I. B. P. (2022). Assessment of Bank’s Financial Health Using Risk Profile, Good Corporate Governance, Earnings, Capital (RGEC) Analysis. European Journal of Business and Management Research, 7(4), 93–98. https://doi.org/https://doi.org/10.24018/ejbmr.2022.7.4.1355

Le, T. D. Q., & Ngo, T. (2020). The determinants of bank profitability: A cross-country analysis. Central Bank Review, 20(2), 65–73. https://doi.org/https://doi.org/10.1016/j.cbrev.2020.04.001

Mahayati, F., Fatonah, S., & Meilisa, R. (2021). Pengaruh return on equity (ROE) dan debt to equity ratio (DER) terhadap nilai perusahaan (PBV) pada perusahaan manufaktur sub sektor logam dan sejenisnya yang terdaftar di BEI. Jurnal Valuasi: Jurnal Ilmiah Ilmu Manajemen Dan Kewirausahaan, 1(1), 258–267.

Marliana, A., Nurhayati, I., & Aminda, R. S. (2020). Pengaruh Operating Leverage & Financial Leverage terhadap Profitabilitas Perusahaan Sub Sektor Konstruksi & Bangunan. Prosiding Lppm Uika Bogor.

Mehdiabadi, A., Tabatabeinasab, M., Spulbar, C., Karbassi Yazdi, A., & Birau, R. (2020). Are we ready for the challenge of Banks 4.0? Designing a roadmap for banking systems in Industry 4.0. International Journal of Financial Studies, 8(2), 32. https://doi.org/https://doi.org/10.3390/ijfs8020032

Nasution, S. (2017). Variabel penelitian. Jurnal Raudhah, 5(2).

Nugraha, B. (2022). Pengembangan Uji Statistik: Implementasi Metode Regresi Linier Berganda dengan Pertimbangan Uji Asumsi Klasik. Pradina Pustaka.

Pratama, R. D. (2021). Pengaruh likuiditas, struktur modal dan struktur aktiva terhadap profitabilitas pada perusahaan Properti dan real estate yang terdaftar Di bursa efek indonesia tahun. Universitas Muhammadiyah Surakarta.

Putra, R., & Kadang, J. (2020). Pengaruh Operating Leverage Dan Financial Leverage Terhadap Profitabilitas. Jurnal Ilmu Manajemen Universitas Tadulako (JIMUT), 6(2), 96–102.

Qurochma, A. N. (2019). Komparasi Metode Kalkulasi Nilai Tambah Pada Laporan Keuangan PT. Mayora Indah Tbk. Jurnal Pamator: Jurnal Ilmiah Universitas Trunojoyo, 12(2), 128–132.

Qurochman, A. N. (2022a). The Influence Of Debt On Profitability With Firm Size And Sales Growth As Control Variables. Jurnal Mantik, 6(2), 2463–2470.

Qurochman, A. N. (2022b). The Influence of Profit Growth, Leverage, and Profitability on Dividend Policy in State-Owned Enterprises Listed on the Indonesia Stock Exchange. Enrichment: Journal of Management, 12(2), 1280–1286.

Ridoan, A., Rokhmawati, A., & Rasuli, M. (2023). Pengaruh Ukuran Perusahaan, Likuiditas, Leverage Terhadap Cash Efective Tax Rate dengan Risiko Bisnis Sebagai Moderasi pada Perusahaan Terindeks LQ45 di Bursa Efek Indonesia. Jurnal EMT KITA, 7(4), 1220–1232.

Sudarmanto, E., Kurniullah, A. Z., Revida, E., Ferinia, R., Butarbutar, M., Abdilah, L. A., Sudarso, A., Purba, B., Purba, S., & Yuniwati, I. (2021). Desain Penelitian Bisnis: Pendekatan Kuantitatif. Yayasan Kita Menulis.

Sugiyono, P. D. (2017). Metode penelitian bisnis: pendekatan kuantitatif, kualitatif, kombinasi, dan R&D. Penerbit CV. Alfabeta: Bandung, 225.

TRIANA, L. H. (2019). Pengaruh Current Ratio (CR), Debt Equity Ratio (DER), Net Profit Margin (NPM), Total Assets Turn Over (TATO), dan Firm Size (SIZE) terhadap Harga Saham Syariah (Studi pada Perusahaan Syariah yang Terdaftar di Jakarta Islamic Index Tahun 2011-2016). Jurnal Ilmiah Mahasiswa FEB, 7(2).

Triyanto, E., Sismoro, H., & Laksito, A. D. (2019). Implementasi Algoritma Regresi Linear Berganda Untuk Memprediksi Produksi Padi Di Kabupaten Bantul. Rabit: Jurnal Teknologi Dan Sistem Informasi Univrab, 4(2), 73–86.

Ul’fah Hernaeny, M. P. (2021). Populasi Dan Sampel. Pengantar Statistika, 1, 33.

Wang, J., & Wang, Z. (2020). Strengths, weaknesses, opportunities and threats (SWOT) analysis of China’s prevention and control strategy for the COVID-19 epidemic. International Journal of Environmental Research and Public Health, 17(7), 2235. https://doi.org/https://doi.org/10.3390/ijerph17072235

Wijaya, R. (2019). Analisis Perkembangan Return On Assets (ROA) dan Return On Equity (ROE) untuk Mengukur Kinerja Keuangan. Jurnal Ilmu Manajemen, 9(1), 40–51.

Yam, J. H., & Taufik, R. (2021). Hipotesis Penelitian Kuantitatif. Jurnal Ilmu Administrasi, 3(2), 96–102.

Zhao, L., Chau, K. Y., Tran, T. K., Sadiq, M., Xuyen, N. T. M., & Phan, T. T. H. (2022). Enhancing green economic recovery through green bonds financing and energy efficiency investments. Economic Analysis and Policy, 76(12), 488–501. https://doi.org/https://doi.org/10.1016/j.eap.2022.08.019

A. N. Janah and A. N. Qurochman, “PRESENTATION OF FINANCIAL REPORTS BASED ON SAK EMKM AT PT SOLOMON INDO GLOBAL,” J. Ekon., vol. 12, no. 3, pp. 1685–1690, 2023.

A. N. Qurochman, “The Influence Of Debt On Profitability With Firm Size And Sales Growth As Control Variables,” J. Mantik, vol. 6, no. 2, pp. 2463–2470, 2022.

A. N. Qurochman, “The Influence of Profit Growth, Leverage, and Profitability on Dividend Policy in State-Owned Enterprises Listed on the Indonesia Stock Exchange,” Enrich. J. Manag., vol. 12, no. 2, pp. 1280–1286, 2022.

H. P. Devi, “Pengaruh Financial Leverage Terhadap Perataan Laba Dimoderasi Firm Size Di Perbankan Indonesia,” 2019.

T. Hidayat, M. Permatasari, and T. Suhamdeni, “Analisis Pengaruh Rasio Keuangan Terhadap Kondisi Financial Distress Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia,” J. Akunt. Bisnis Pelita Bangsa, vol. 5, no. 02, pp. 93–108, 2020.

F. Mahayati, S. Fatonah, and R. Meilisa, “Pengaruh return on equity (ROE) dan debt to equity ratio (DER) terhadap nilai perusahaan (PBV) pada perusahaan manufaktur sub sektor logam dan sejenisnya yang terdaftar di BEI,” J. Valuasi J. Ilm. Ilmu Manaj. Dan Kewirausahaan, vol. 1, no. 1, pp. 258–267, 2021.

A. Marliana, I. Nurhayati, and R. S. Aminda, “Pengaruh Operating Leverage & Financial Leverage terhadap Profitabilitas Perusahaan Sub Sektor Konstruksi & Bangunan,” Pros. Lppm Uika Bogor, 2020.

R. Putra and J. Kadang, “Pengaruh Operating Leverage Dan Financial Leverage Terhadap Profitabilitas,” J. Ilmu Manaj. Univ. Tadulako, vol. 6, no. 2, pp. 96–102, 2020.

H. Herawati, “Pentingnya Laporan Keuangan Untuk Menilai Kinerja Keuangan Perusahaan,” JAZ J. Akunt. Unihaz, vol. 2, no. 1, pp. 16–25, 2019.

A. N. Qurochma, “Komparasi Metode Kalkulasi Nilai Tambah Pada Laporan Keuangan PT. Mayora Indah Tbk.,” J. Pamator J. Ilm. Univ. Trunojoyo, vol. 12, no. 2, pp. 128–132, 2019.

L. H. TRIANA, “Pengaruh Current Ratio (CR), Debt Equity Ratio (DER), Net Profit Margin (NPM), Total Assets Turn Over (TATO), dan Firm Size (SIZE) terhadap Harga Saham Syariah (Studi pada Perusahaan Syariah yang Terdaftar di Jakarta Islamic Index Tahun 2011-2016),” J. Ilm. Mhs. FEB, vol. 7, no. 2, 2019.

A. Ridoan, A. Rokhmawati, and M. Rasuli, “Pengaruh Ukuran Perusahaan, Likuiditas, Leverage Terhadap Cash Efective Tax Rate dengan Risiko Bisnis Sebagai Moderasi pada Perusahaan Terindeks LQ45 di Bursa Efek Indonesia,” J. EMT KITA, vol. 7, no. 4, pp. 1220–1232, 2023.

R. D. Pratama, “Pengaruh likuiditas, struktur modal dan struktur aktiva terhadap profitabilitas pada perusahaan Properti dan real estate yang terdaftar Di bursa efek indonesia tahun.” Universitas Muhammadiyah Surakarta, 2021.

R. Wijaya, “Analisis Perkembangan Return On Assets (ROA) dan Return On Equity (ROE) untuk Mengukur Kinerja Keuangan,” J. Ilmu Manaj., vol. 9, no. 1, pp. 40–51, 2019.

J. H. Yam and R. Taufik, “Hipotesis Penelitian Kuantitatif,” J. Ilmu Adm., vol. 3, no. 2, pp. 96–102, 2021.

H. L. Geovannie, “Pengaruh Pemanfaatan Teknologi Informasi dan Kesesuaian Tugas – Teknologi Informasi terhadap Kinerja Individual Instansi Pemerintahan (Studi Kasus pada Kantor Pelayanan Pajak Pratama Malang Selatan),” J. Mhs. Perpajak., vol. 8, no. 1, 2016.

E. Sudarmanto et al., Desain Penelitian Bisnis: Pendekatan Kuantitatif. Yayasan Kita Menulis, 2021.

S. Nasution, “Variabel penelitian,” J. Raudhah, vol. 5, no. 2, 2017.

M. P. Ul’fah Hernaeny, “Populasi Dan Sampel,” Pengantar Stat., vol. 1, p. 33, 2021.

P. D. Sugiyono, “Metode penelitian bisnis: pendekatan kuantitatif, kualitatif, kombinasi, dan R&D,” Penerbit CV. Alf. Bandung, vol. 225, 2017.

B. Nugraha, Pengembangan Uji Statistik: Implementasi Metode Regresi Linier Berganda dengan Pertimbangan Uji Asumsi Klasik. Pradina Pustaka, 2022.

E. Triyanto, H. Sismoro, and A. D. Laksito, “Implementasi Algoritma Regresi Linear Berganda Untuk Memprediksi Produksi Padi Di Kabupaten Bantul,” Rabit J. Teknol. dan Sist. Inf. Univrab, vol. 4, no. 2, pp. 73–86, 2019.

Sihotang, J. (2019). Implementation of Gray Level Transformation Method for Sharping 2D Images. INFOKUM, 8(1, Desembe), 16-19.

Sihotang, J. (2020). Analysis of service satisfaction level using rough set algorithm. Infokum, 8(2, Juni), 55-56.

Sihotang, J. (2020). Analysis Of Shortest Path Determination By Utilizing Breadth First Search Algorithm. Jurnal Info Sains: Informatika dan Sains, 10(2), 1-5.

Sihotang, J., Panjaitan, E. S., & Yunis, R. (2020). Evaluation of Information Technology Governance by Using CobIT 5 Framework at Higher Education. Jurnal Mantik, 4(3), 2194-2203.

Amri, S., & Sihotang, J. (2023). Impact of Poverty Reduction Programs on Healthcare Access in Remote Ar-eas: Fostering Community Development for Sustainable Health. Law and Economics, 17(3), 170-185.

Sihotang, J., Alesha, A., Batubara, J., Gorat, S. E., & Panjaitan, F. S. (2022). A hybrid approach for adaptive fuzzy network partitioning and rule generation using rough set theory: Improving data-driven decision making through accurate and interpretable rules. International Journal of Enterprise Modelling, 16(1), 12-22.

Sihotang, J. (2023). Optimization of Inventory Ordering Decision in Retail Business using Exponential Smoothing Approach and Decision Support System. International Journal of Mechanical Computational and Manufacturing Research, 12(2), 46-52.

Sihotang, J. (2023). Analysis Of The Differences In The Use Of Zoom And Google Meet In Learning At Putra Abadi Langkat University. Instal: Jurnal Komputer, 15(02), 474-479.

Vinsensia, D., Amri, S., Sihotang, J., & Sihotang, H. T. (2024). New Method for Identification and Response to Infectious Disease Patterns Based on Comprehensive Health Service Data. MATRIK: Jurnal Manajemen, Teknik Informatika dan Rekayasa Komputer, 23(3), 581-590.

Sihotang, H. T., Riandari, F., & Sihotang, J. (2024). Graph-based Exploration for Mining and Optimization of Yields (GEMOY Method). Jurnal Teknik Informatika CIT Medicom, 16(2), 70-81.

Sihotang, J., Amri, S., & Vinsensia, D. (2024). Exploring the intersection of HIV/AIDS knowledge and rapid testing attitudes in higher education: A student perspective. Community Service and Applied Research, 1(1), 18-29.

Sihotang, J., & Manalu, A. (2024). Strategi Pengawasan Orang Tua dalam Mengelola Waktu Bermain Gadget Anak di Desa Pancurbatu. Jurnal Pengabdian Masyarakat Nauli, 2(2), 65-72.

Simbolon, R., Sihotang, W., & Sihotang, J. (2024). Tapping Ocean Potential: Strategies for integrating tidal and wave energy into national power grids. GEMOY: Green Energy Management and Optimization Yields, 1(1), 49-65.

Downloads

Published

2024-08-09

How to Cite

Qurochman, A. N., & Putra, A. N. A. S. (2024). The Effect Of Financial Leverage And Operating Leverage On Company Profitability. International Journal on Social Science, Economics and Art, 14(2), 228–237. Retrieved from https://ijosea.isha.or.id/index.php/ijosea/article/view/531