PENGARUH FINANCIAL LEVERAGE TERHADAP KINERJA KEUANGAN (Studi Kasus Pada Perusahaan Properti dan Real Estate di BEI 2016-2018)

Abstract

ABSTRACT The main objective of this study was to determine the effect of financial leverage on the financial performance of 60 selected property and real estate companies listed on the Indonesia Stock Exchange for 3 years (2016-2018). This study uses three financial leverage for independent variables such as debt ratio (DR), debt to equity ratio (DER), and interest coverage ratio (ICR) in determining its effect on financial performance such as return on equity (ROE) as the dependent variable. Secondary data were obtained from financial statements (statements of comprehensive income and statements of financial position) of selected companies quoted from the Indonesia Stock Exchange (IDX). Descriptive statistical tests, simple linear regression tests and hypothesis tests are used to analyze the data of this study. The analysis shows that there is a positive and significant influence between financial leverage on the financial performance of 39 companies. This is evidenced by testing the hypothesis that produces a calculated value of t (2,818) > t-table (1.65481) and a sig.value 0.006 < alpha 0.05, with a regression coefficient of financial performance positive of 0.700.

Keywords: Financial Leverage, Financial Performance.