Financial Leverage and Profitability of Pharmaceutical Companies in Indonesia Stock Exchange

DOI

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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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  - 10.2991/icebef-18.2019.1
ID  - Munthashofi2019/05
ER  -