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Asset Turnover, Capital Structure and Financial Performance Consumption Industry Company in Indonesia Stock Exchange

Author

Listed:
  • Siti Nurlaela

    (Department of Accounting, Faculty of Economics, University Islam Batik of Surakarta, Indonesia)

  • Bambang Mursito

    (Department of Management, Faculty of Economics, University Islam Batik of Surakarta, Indonesia)

  • Eny Kustiyah

    (Department of Management, Faculty of Economics, University Islam Batik of Surakarta, Indonesia)

  • Istiqomah

    (Department of Management, Faculty of Economics, University Islam Batik of Surakarta, Indonesia)

  • Sri Hartono

    (Department of Management, Faculty of Economics, University Islam Batik of Surakarta, Indonesia)

Abstract

This research is conducting an empirical test on the effect of capital structure, liquidity, asset structure and asset turnover on the financial performance of consumption industry sector companies in the Indonesia Stock Exchange in 2016-2018. The difference with previous research lies in the use of independent variables, the number of samples used and the study period. This research is quantitative research. The analytic method in this research is multiple linear regression analysis. The results of the t-test hypothesis show that the capital structure variable debt to equity ratio (DER), liquidity current ratio (CR), and asset turnover (TATO) have a significant effect on financial performance (return on assets).

Suggested Citation

  • Siti Nurlaela & Bambang Mursito & Eny Kustiyah & Istiqomah & Sri Hartono, 2019. "Asset Turnover, Capital Structure and Financial Performance Consumption Industry Company in Indonesia Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 297-301.
    • Handle: RePEc:eco:journ1:2019-03-31
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    References listed on IDEAS

    as
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    5. Weisbach, Michael S., 1988. "Outside directors and CEO turnover," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 431-460, January.
    6. James Obilikwu, 2018. "The Imact of Capital, Concentration, Size and Liquidity on Banking Industry Performance in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 54-60.
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    8. Muhammad Yusuf & Surachman Surjaatmadja, 2018. "Analysis of Financial Performance on Profitability with Non Performace Financing As Variable Moderation," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 126-132.
    9. Namitha K. Cheriyan & Lazar Daniel, 2019. "Relationship between Liquidity, Volatility and Trading Activity: An Intraday Analysis of Indian Stock Market," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 17-22.
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    Cited by:

    1. Ullah, Nazim, 2021. "A Comparative Analysis between Unilever and Johnson & Johnsons," MPRA Paper 108582, University Library of Munich, Germany, revised 02 Jan 2021.
    2. Supriyanto Supriyanto & Suripto Suripto & Arif Sugiono & Putri Irmala Sari, 2021. "Impact of Oil Prices and Stock Returns: Evidence of Oil and Gas Mining Companies in Indonesia during the COVID-19 Period," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 312-318.

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    More about this item

    Keywords

    Capital Structure; Asset Turnover; Return on Assets;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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