The Effect of Employee Stock Option Program (ESOP), Leverage, Non-Performing Loan (NPL) and Company Size on Financial Performance in Banking Sector Companies Listed on the Indonesia Stock Exchange, 2016 -2021

Abstract

Financial performance has an important role in achieving company goals. There are many factors that can affect a company's financial performance. The company's financial performance can provide an overview for investors regarding the level of profit to be obtained in the future or with a long-term orientation. Factors that are suspected of influencing the company's financial performance include the Employee Stock Option Program (ESOP), Leverage, Non-Performing Loans and Company Size on the company's financial performance. This study aims to determine the effect of the Employee Stock Option Program (ESOP), Leverage, Non-Performing Loans and Company Size on company financial performance as measured by return on assets (ROA). This study uses a purposive sampling method with several criteria and removes outlier data to obtain valid data. The sample used in this research is banking companies listed on the Indonesia Stock Exchange in 2016-2021. The analytical method used is multiple linear analysis. The results showed that partially ESOP had a positive but not significant effect on ROA. Meanwhile, Leverage and Non-Performing Loans have a negative and significant effect on ROA. While company size has a significant positive effect on company financial performance (ROA). Keywords: Employee Stock Option, Leverage, Non Performing Loan, Company Size, Financial Performance