THE EFFECT OF DEBT TO EQUITY RATIO, RETURN ON ASSETS AND COMPANY SIZE ON BOND RATINGS OF NON-FINANCIAL COMPANIES RATED BY PT PEFINFO.

Abstract

One form of funding by the company is by issuing bonds. This study aims to examine the effect of debt to equity ratio, return on assets and firm size on bond ratings of non-financial companies ranked by PT Pefindo during the 2015-2019 period. The type of data used is secondary data from each non-financial sector company obtained from the official website of the Indonesia Stock Exchange and the website of PT Pefindo. The sampling technique was carried out by purposive sampling. The sample used in this study is a total of 11 companies. The data analysis technique used is logistic regression analysis test. The results showed that the debt to equity ratio had a significant negative effect, return on assets had a nonsignificant negative effect and firm size had an insignificant positive effect on bond ratings. The results of the coefficient of determination show a value of 0.206, which means that the variables of debt to equity ratio, return on assets and firm size are able to explain the bond rating variable of 20.6%.