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The Effect of Leverage and Liquidity on Profitability: Study of The KBW NASDAQ Financial Technology Company for the 2017–2022 Period

In: Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)

Author

Listed:
  • Yusuf Murtadlo Hidayat

    (Universitas Pendidikan Indonesia)

  • I. Z. F. S. Ratu Dintha

    (Universitas Pendidikan Indonesia)

  • Heraeni Tanuatmodjo

    (Universitas Pendidikan Indonesia)

  • Nursyaharani Nabila

    (Universitas Pendidikan Indonesia)

Abstract

This study aims to examine the impact of leverage and liquidity on profitability and to determine the specific effects of leverage and liquidity on profitability in KBW NASDAQ Financial Technology companies from 2017 to 2022. The research adopts a descriptive and verification approach, utilizing a quantitative method with a total sample of 15 companies within the KBW NASDAQ Financial Technology index. The data analysis technique employed is multiple regression analysis using EViews 12 software. The findings indicate that leverage has no significant effect on profitability, whereas liquidity has a positive impact on profitability. Based on these results, it is recommended that companies optimize asset utilization to enhance profitability by increasing sales, improving cost efficiency, and expanding market share. Effective leverage management is also crucial to prevent excessive financial burdens, ensuring the optimal use of funds to maintain financial stability and sustain long-term growth.

Suggested Citation

  • Yusuf Murtadlo Hidayat & I. Z. F. S. Ratu Dintha & Heraeni Tanuatmodjo & Nursyaharani Nabila, 2025. "The Effect of Leverage and Liquidity on Profitability: Study of The KBW NASDAQ Financial Technology Company for the 2017–2022 Period," Advances in Economics, Business and Management Research, in: Ratih Hurriyati & Sulastri Sulastri & Lisnawati Lisnawati & Lili Adi Wibowo (ed.), Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), pages 581-586, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-817-2_68
    DOI: 10.2991/978-94-6463-817-2_68
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