Increase Prosperity Shareholder with Leverage Analysis and Asset Effectiveness Companies in the IDX 30 Index

DOI

10.2991/978-94-6463-346-7_36How to use a DOI?

Keywords

Financial Leverage; Operating Leverage; Asset -Effectiveness; Shareholder

Abstract

The goal of a company is to maximize the prosperity of company owners/shareholders or maximize company value and the sustainability of the company’s business. Management as an agent must be more effective and efficient in utilizing and managing resources, especially financial resources owned by the company. Managers must be precise in determining funding strategies to fund investment activities and company operational activities by paying attention to the optimal level of leverage and the level of asset effectiveness. This research aims to prove leverage analysis (financial leverage and operating leverage) and the effectiveness of company assets in influencing the prosperity of shareholders of 21 companies in the IDX 30 Index for 2016–2020. This research method is quantitative research, using deductive data and time series numerical data, using hypotheses with inferential statistical methods.The type of research method is correlational to determine the relationship between Operating Leverage, Financial Leverage and Asset Effectiveness with shareholder prosperity. Empirical studies prove that Operating Leverage and Financial Leverage do not affect shareholder prosperity, and Asset Effectiveness affects shareholder prosperity. However, it is proven that operating leverage, financial leverage and asset effectiveness can explain the creation of value for company shareholders/shareholder prosperity.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ninik Lukiana
AU  - Ainun Jariah
AU  - Sukma Indriani
PY  - 2024
DA  - 2024/01/11
TI  - Increase Prosperity Shareholder with Leverage Analysis and Asset Effectiveness Companies in the IDX 30 Index
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 193
EP  - 198
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_36
DO  - 10.2991/978-94-6463-346-7_36
ID  - Lukiana2024
ER  -