Abstract

The objectives of this research were to know and analyze the effect of leverage and liquidity simultaneously and partially on profitability at go public real estate and property company in Indonesian stock exchange within the period of 2005 until 2010. In detail, this research aims were: 1) to know the effect of liquidity and leverage on profitability of property and real estate company in Indonesian stock exchange, 2) to know the effect of liquidity on profitability of property and real estate company in Indonesian stock exchange, and 3) to know the effect of leverage on profitability of property and real estate company in Indonesian stock exchange. Based on purposive sampling technique, this research determined 43 companies as research population, since 16 companies provide a comprehensive and complete financial report within the period of research. The data was analyzed using SPSS version 16 with multiple linear regression test. The result showed that: 1) leverage and liquidity simultaneously have significant effect on profitability, 2) liquidity have an effect partially on profitability, but the effect was not significant, 3) leverage have a significant effect on profitability partially.Int. J. Soc. Sc. Manage. Vol. 3, Issue-4: 300-304

Highlights

  • Indonesian stock exchange is one of the places to make a transaction and trade the stock exchange of various companies in Indonesia

  • Data Gathering Technique The method of data gathering used in this research was documentation method. This method was done by taking notes or collecting financial report data included in Indonesian Capital Market Directory (ICMD)

  • Because the Sig value was smaller than α 0,05, it could be concluded that the first hypothesis stated that liquidity and leverage affect simultaneously on profitability of property and real estate company in Indonesian stock exchange was accepted

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Summary

Introduction

Indonesian stock exchange is one of the places to make a transaction and trade the stock exchange of various companies in Indonesia. The kinds of companies had been listed in Indonesian stock exchange include agricultural companies, mining companies, basic and chemical industries, various industry of consumed goods, infrastructure, finance, property and real estate companies. The aim of Indonesian stock exchange are to increase the efficiency of financial capital market industry in Indonesia, including property and real estate companies, and to increase the attractiveness of investation. To reach their aims, the property and real estate companies managed their companies best to be able to compete with other companies. Investation in property and real estate sector is still a main choice of most people, because of the asumption that property and real estate is one of best ways to develop money

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