THE EFFECT OF LEVERAGE AND COMPANY SIZE ON THE PROFITABILITY OF THE PAPER INDUSTRY SUB-SECTOR ON THE INDONESIAN STOCK EXCHANGE
Keywords:
Leverage, Company Size, Profitability, ROA, ROE
Abstract
This study aims to empirically examine the effect of leverage and company size on the profitability of paper industry subsector companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. Profitability is measured by Return on Assets (ROA) and Return on Equity (ROE). A quantitative method with a causal associative approach was used in the analysis of four companies selected using purposive sampling. Testing was conducted using multiple linear regression analysis, t-test, F-test, and coefficient of determination test. The results showed that neither leverage nor company size had a significant effect on ROA or ROE partially, although they simultaneously showed an effect on ROA. This finding indicates that capital structure and scale of operations are not dominant factors in improving financial performance in the paper industry subsector.
References
Adria, C., & Susanto, L. (2020). The effect of leverage, liquidity, company size, and total asset turnover on profitability. Journal of Accounting Paradigms, 2(1), 393-400.
Adria, R., & Susanto, H. (2020). The influence of capital structure on the profitability of mining sector companies. Journal of Economics and Business, 17(2), 123–134.
Afrianti, D., & Purwaningsih, E. (2022). The effect of leverage, liquidity, and asset growth on profitability. Scientific Journal of Management, Economics, & Accounting (MEA), 6(2), 1781-1796.
Afrianti, D., & Purwaningsih, E. (2022). The Effect of Leverage, Liquidity, and Asset Growth on Profitability. Scientific Journal of Management, Economics, & Accounting (MEA), 6(2), 1781–1796
Arnold, Putri Wahyuni, Pinondang Nainggolan, and Darwin Damanik. "Analysis of business feasibility and development strategies for small-scale tempeh industries in Setia Negara Village, Siantar Sitalasari District." Jurnal Ekuilnomi 2.1 (2020): 29-39.
Ellysa, F., & Indra, W. (2019). The effect of leverage and liquidity on the profitability of manufacturing companies. Journal of Accounting and Finance, 10(2), 55–64.
Fransisca, E., & Widjaja, I. (2019). The Effect of Leverage, Liquidity, Sales Growth, and Company Size on Manufacturing Company Profitability. Journal of Managerial and Entrepreneurship, 1(2), 199–206.
Frisca, MP, & Triyonowati. (2018). The effect of leverage, liquidity, and company size on the profitability of manufacturing companies on the IDX. Journal of Management Science and Research (JIRM), 7(8).
Ginting, IRF, & Simanjuntak, D. (2022). The Effect of Leverage, Liquidity, and Company Size on Profitability in Mining Companies Listed on the IDX for the 2015-2020 Period. Journal of Accounting, Finance, and Taxation, 5(2), 63-70.
Ginting, IRF, & Simanjuntak, D. (2022). The Effect of Leverage, Liquidity, and Company Size on Profitability in Mining Companies Listed on the IDX for the 2015–2020 Period. Journal of Accounting, Finance, and Taxation (JAKP), 5(2).
Ilahude, Putri Aprilia, Joubert Barens Maramis, and Victoria Neisye Untu. "Analysis of Financial Performance Before and During the Covid-19 Pandemic in Telecommunication Companies Listed on the IDX." EMBA Journal: Journal of Economics, Management, Business and Accounting Research 9.4 (2021): 1144-1152.
Ningsih, RAM, Adel, JF, & Ratih, AE (2021). Factors Affecting Fishermen's Income in Dompak Village, Tanjungpinang. Student Online Journal (SOJ) UMRAH-Economics , 2 (2), 725-740.
Nuraini, FD, & Suwaidi, RA (2022). The Effect of Leverage, Liquidity, and Company Size on Profitability in Textile and Garment Companies Listed on the Indonesia Stock Exchange. Journal of Management Science, 11(2), 157-166.
The Indonesian Effect. Journal of Management Science, 11(2), 157–166.
Nuraini, N., & Suwaidi, M. (2022). Analysis of the influence of learning motivation on students' academic achievement. Journal of Education and Learning, 12(1), 45–55.
Nurdiana, D. (2018). The influence of leadership style on employee performance in service companies. Indonesian Journal of Management, 8(1), 15–25.
Ravasadewa, Raka Pratama, and Siti Rokhmi Fuadati. "The influence of financial ratios on profit growth in coal companies on the Indonesia Stock Exchange." Journal of Management Science and Research (JIRM) 7.5 (2018).
Adria, R., & Susanto, H. (2020). The influence of capital structure on the profitability of mining sector companies. Journal of Economics and Business, 17(2), 123–134.
Afrianti, D., & Purwaningsih, E. (2022). The effect of leverage, liquidity, and asset growth on profitability. Scientific Journal of Management, Economics, & Accounting (MEA), 6(2), 1781-1796.
Afrianti, D., & Purwaningsih, E. (2022). The Effect of Leverage, Liquidity, and Asset Growth on Profitability. Scientific Journal of Management, Economics, & Accounting (MEA), 6(2), 1781–1796
Arnold, Putri Wahyuni, Pinondang Nainggolan, and Darwin Damanik. "Analysis of business feasibility and development strategies for small-scale tempeh industries in Setia Negara Village, Siantar Sitalasari District." Jurnal Ekuilnomi 2.1 (2020): 29-39.
Ellysa, F., & Indra, W. (2019). The effect of leverage and liquidity on the profitability of manufacturing companies. Journal of Accounting and Finance, 10(2), 55–64.
Fransisca, E., & Widjaja, I. (2019). The Effect of Leverage, Liquidity, Sales Growth, and Company Size on Manufacturing Company Profitability. Journal of Managerial and Entrepreneurship, 1(2), 199–206.
Frisca, MP, & Triyonowati. (2018). The effect of leverage, liquidity, and company size on the profitability of manufacturing companies on the IDX. Journal of Management Science and Research (JIRM), 7(8).
Ginting, IRF, & Simanjuntak, D. (2022). The Effect of Leverage, Liquidity, and Company Size on Profitability in Mining Companies Listed on the IDX for the 2015-2020 Period. Journal of Accounting, Finance, and Taxation, 5(2), 63-70.
Ginting, IRF, & Simanjuntak, D. (2022). The Effect of Leverage, Liquidity, and Company Size on Profitability in Mining Companies Listed on the IDX for the 2015–2020 Period. Journal of Accounting, Finance, and Taxation (JAKP), 5(2).
Ilahude, Putri Aprilia, Joubert Barens Maramis, and Victoria Neisye Untu. "Analysis of Financial Performance Before and During the Covid-19 Pandemic in Telecommunication Companies Listed on the IDX." EMBA Journal: Journal of Economics, Management, Business and Accounting Research 9.4 (2021): 1144-1152.
Ningsih, RAM, Adel, JF, & Ratih, AE (2021). Factors Affecting Fishermen's Income in Dompak Village, Tanjungpinang. Student Online Journal (SOJ) UMRAH-Economics , 2 (2), 725-740.
Nuraini, FD, & Suwaidi, RA (2022). The Effect of Leverage, Liquidity, and Company Size on Profitability in Textile and Garment Companies Listed on the Indonesia Stock Exchange. Journal of Management Science, 11(2), 157-166.
The Indonesian Effect. Journal of Management Science, 11(2), 157–166.
Nuraini, N., & Suwaidi, M. (2022). Analysis of the influence of learning motivation on students' academic achievement. Journal of Education and Learning, 12(1), 45–55.
Nurdiana, D. (2018). The influence of leadership style on employee performance in service companies. Indonesian Journal of Management, 8(1), 15–25.
Ravasadewa, Raka Pratama, and Siti Rokhmi Fuadati. "The influence of financial ratios on profit growth in coal companies on the Indonesia Stock Exchange." Journal of Management Science and Research (JIRM) 7.5 (2018).
Published
2026-04-30
How to Cite
Rastimah, R., Rizal, R., & Ajis, R. (2026, April 30). THE EFFECT OF LEVERAGE AND COMPANY SIZE ON THE PROFITABILITY OF THE PAPER INDUSTRY SUB-SECTOR ON THE INDONESIAN STOCK EXCHANGE. Jurnal Manajemen, 14(2), 150-156. https://doi.org/https://doi.org/10.36546/jm.v14i2.1889
Section
Articles
.png)
