LEVERAGE, COMPANY PERFOMANCE AND COMPANY SIZE : CASE STUDY IN INDONESIA Wiyarni Wiyarni- Bunyamin Bunyamin- Olivia Shendy
STIE Malangkucecwara Malang
Abstract
This study aims to investigate the influence of leverage on company performance with company size as moderating variable. Leverage in this study is measured by the Debt-to-Equity Ratio and Debt to Asset Ratio. Each debt will put a strain on the person who owes it. The higher the loan amount, the higher the interest rate that must be paid. A study of 40 publicly traded firms listed on the Indonesia Stock Exchange is conducted based on the description. A conclusion may be formed based on the findings that there is an influence of Debt-to-Equity Ratio and Debt to Asset Ratio on the performance of firms that are listed on the Indonesia Stock Exchange simultaneously. This study also found that company size is not able to significantly moderate the effect of leverage on company performance.
Keywords: Leverage, Company Performance, Company Size, Indonesia Stock Exchange
