PENGARUH CURRENT RATIO, DEBT TO EQUITY RATIO, DAN TOTAL ASSETS TURNOVER TERHADAP PRICE EARNING RATIO DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN SUB SEKTOR KONTRUKSI DAN BANGUNAN YANG TERDAFTAR DI BURSA EFEK INDONESIA
Daftar Isi:
- This study aims to analyze the effect of Current Ratio (CR), Debt to Equity Ratio (DER), and Total Assets Turnover (TATO) on Price Earning Ratio (PER) and profitability (ROA) as intervening variables in construction and building sub-sector companies that registered on the Indonesia Stock Exchange during the 2014-2018 period. The sample is determined based on the purposive sampling method, so that a sample of 7 companies is obtained. This study uses secondary data and path analysis. The results of this study indicate that CR affects ROA, whereas DER and TATO have no effect on ROA, CR and DER have an effect on PER, while TATO has no effect on PER. ROA affects PER. CR and TATO have no effect on PER through ROA. Whereas DER influences PER through ROA. The implication in this research is that companies in making decisions can better consider the use of Current Ratio (CR) because the greater the ratio, the better the company. In the condition of companies that have a high level of profitability, will try to reduce taxes by increasing the debt ratio, so that additional debt will reduce taxes. This tax reduction will have an impact on company profitability that is greater than companies that do not have debt. High profitability will have an impact on higher stock prices. This can attract investors to invest and increase the company's Price Earning Ratio (PER). The author's advice for further researchers is to add other independent variables related to liquidity so that the results will be better.