Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)

Financial Leverage and Profitability of Pharmaceutical Companies in Indonesia Stock Exchange

Authors
Badria Munthashofi, Imas Purnamasari
Corresponding Author
Badria Munthashofi
Available Online May 2019.
DOI
https://doi.org/10.2991/icebef-18.2019.1How to use a DOI?
Keywords
financial leverage; rofitability
Abstract

The problems that analyzed in this study are a decrease in the profitability of pharmaceutical sub sector companies. The decrease in the profitability indicates a company's financial performance it’s also declined, thus the company's capability to generate earnings also decreased. This study aims to determine the effect of financial leverage as measured by debt to equity ratio (der) to profitability as measured by return on equity (roe). The research used verification methods. These populations included pharmaceutical companies that listed in Indonesia stock exchange period of 2011-2015. The statistical analysis used simple linear regression. The results obtained that financial leverage has a negative and significant impact on profitability.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
May 2019
ISBN
978-94-6252-723-2
ISSN
2352-5428
DOI
https://doi.org/10.2991/icebef-18.2019.1How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Badria Munthashofi
AU  - Imas Purnamasari
PY  - 2019/05
DA  - 2019/05
TI  - Financial Leverage and Profitability of Pharmaceutical Companies in Indonesia Stock Exchange
BT  - Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)
PB  - Atlantis Press
SP  - 1
EP  - 3
SN  - 2352-5428
UR  - https://doi.org/10.2991/icebef-18.2019.1
DO  - https://doi.org/10.2991/icebef-18.2019.1
ID  - Munthashofi2019/05
ER  -