Leverage as Intervening Variable of Profitability Post Pandemic Covid 19 Zulkifli (a*), Mohd Zulkifli Muhammad (b), Fendi Saputra (c), Sigit Mareta (d),Caturida Meiwanto Doktoralina (e)
a,c) Departement of Management & Jaya Launch Pad, Universitas Pembangunan Jaya, Indonesia.
*zul.kifli[at]upj.ac.id
b) Universiti Malaysia Kelantan, Jalan Pengkalan Chepa, 16100, Kota Bharu, Kelantan, Malaysia.
d,e) Accounting Program, Universitas Dian Nusantara, Jakarta, Indonesia.
Abstract
A cement company in Indonesia that supports the government^s role in the development of the property sector. However, the Covid-19 pandemic has caused problems in making a profit. Therefore, the main problem of this study is to find out and analyse how profitability affects leverage and market value with the variables Price Earning Ratio (PER) and Price to Book Value (PBV) as proxies. Second, knowing and analyzing leverage as an intervening variable that relates the effect of profitability to Market Value. This study explores the theoretical model and empirical results of how profitability affects Market Value and through leverage. From various empirical results, there is still little research on the ability of leverage as a variable to analyze cement companies listed on the Indonesia Stock Exchange. This research is expected to contribute to further research and facilitate the government to approach the development of cement companies to encourage the economy. Meanwhile, investors can provide information about the company^s financial performance. The importance of this research can be useful for companies in providing solutions on how to increase market value by increasing profitability through leverage factors.
Keywords: Leverage, Market Value, Profitability, Price Earning Ratio, Price to Book Value
Topic: Business, Corporate Governance, and Accounting
