THE EFFECT OF FINANCIAL PERFORMANCE ON PROFIT GROWTH OF LQ45 COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

Abstract

This study aimed to examine the Effect of Financial Performance on Profit Growth of LQ45 Companies Listed on the Indonesia Stock Exchange (IDX). The population of this study was LQ45 Companies Listed on the Indonesia Stock Exchange. The samples were selected using a purposive sampling to 45 companies listed on the Indonesia Stock Exchange and only 21 samples were then obtained. The independent variable was financial Performance consisting of Current Ratio (CR), Debt to Equity Ratio, and return On Assets (ROA). Meanwhile, the dependent variable was Profit Growth. The results showed that simultaneously Current Ratio, Debt to Equity Ratio, and Return on Assets significantly affected Profit Growth of the LQ45 Companies listed on the Indonesia Stock Exchange. Partially, only Current Ratio and Return on Assets significantly affected Profit Growth. Debt to Equity Ratio did not significantly affect Profit Growth of the LQ45 Companies Listed on the Indonesia Stock Exchange.

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