Research Article
The Effect of Profitability Ratio, Efficiency Ratio, and Economic Growth on Debt to Equity Ratio: A Case Study on Health Sector Companies Listed on the Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.31-3-2022.2321003, author={Putri Dinda Adellia and Suhari Pranyoto}, title={The Effect of Profitability Ratio, Efficiency Ratio, and Economic Growth on Debt to Equity Ratio: A Case Study on Health Sector Companies Listed on the Indonesia Stock Exchange}, proceedings={Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICONIC-RS}, year={2022}, month={8}, keywords={profitability ratio efficiency ratio economic growth debt to equity ratio health sector}, doi={10.4108/eai.31-3-2022.2321003} }- Putri Dinda Adellia
Suhari Pranyoto
Year: 2022
The Effect of Profitability Ratio, Efficiency Ratio, and Economic Growth on Debt to Equity Ratio: A Case Study on Health Sector Companies Listed on the Indonesia Stock Exchange
ICONIC-RS
EAI
DOI: 10.4108/eai.31-3-2022.2321003
Abstract
This research aims to study the effect of Profitability Ratio, Efficiency Ratio, and Economic growth on Debt to Equity Ratio on health sector companies listed on the Indonesia Stock Exchange (IDX) for the period of 2015-2020. A regression model of random effect panel data was used to explain the relationship. Data used in the study were collected from financial reports of 12 companies in the health sector listed on the IDX. The results of the t-test in this study prove that the Efficiency Ratio as represented by Accounts Payable Ratio has a significant effect on Debt to Equity Ratio. On the other hand, profitability ratio and Economic Growth (Growth of Gross Domestic Product) have no significant effect on Debt to Equity ratio. F-test results shows that the Profitability Ratio, Efficiency Ratio, and Economic Growth simultaneously have significant effects on the Debt to Equity Ratio.