UTANG DAN PENGARUHNYA TERHADAP KINERJA PERUSAHAAN

Abstract

The purpose of this paper was to investigate the influence of debt on profitability of firms listed on IndonesianStock Exchange. Multiple regression analysis was used in the study in estimating the relationship betweendebt and firm performance. This study also used three of accounting-based measures and one of market-basedmeasure of financial performance i.e. return on equity (ROE), return on assets (ROA), gross profit margin(GPM), and Tobin’s Q). Based on a sample of non-financial Indonesian firms listed from 2006 to 2010 theresults revealed that debt had a negative impact on firm’s performance. The result showed that industry ofHotel and Travel, and Construction was susceptible to use debt.

Keywords

• debt, firm age, firm size, growth, leverage, profitability