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THE INFLUENCE OF LIQUIDITY, COMPANY SIZE, AND SOLVENCY ON FINANCIAL PERFORMANCE (Case Study on the 10 Largest Banks Listed on the Indonesia Stock Exchange During the Period 2018-2022)

Authors

Ratna Shofiyatul Fitriyah University of Muhammadiyah Semarang
Suwardi Suwardi University of Muhammadiyah Semarang
Djoko Setyo Hartono Universitas Muhammadiyah Semarang

Keywords:

Liquidity, Firm Size, Solvency, Financial Performance

Abstract

This study aims to determine the influence of liquidity, company size, and solvency on company performance. The sampling technique used is purposive sampling involving the 10 largest banks listed on the IDX in the years 2018-2021. The data used are secondary data in the form of companies' annual financial reports using multiple regression analysis. All testing in this study used SPSS software version 27. The test results reveal that the coefficient of determination (R2) is 0.427, meaning that the independent variables affect the dependent variable by 42.7%, with the remaining 57.3% influenced by other variables outside the scope of this research. The F-test results show that the independent variables Loan to Deposit Ratio (LDR), Firm Size (SIZE), and Debt to Asset Ratio (DAR) collectively have a positive impact on the dependent variable Return on Assets (ROA). The t-test results show that the variable Firm Size (SIZE) positively affects Return on Assets (ROA). Meanwhile, Loan to Deposit Ratio (LDR) and Debt to Asset Ratio (DAR) have a negative effect on Return on Assets (ROA). The negative sign in the t-value indicates an inverse relationship between the variables LDR and DAR with the variable ROA.

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Published

2024-07-27 — Updated on 2024-08-24

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How to Cite

Fitriyah, R. S. ., Suwardi , S. ., & Hartono, D. S. . (2024). THE INFLUENCE OF LIQUIDITY, COMPANY SIZE, AND SOLVENCY ON FINANCIAL PERFORMANCE (Case Study on the 10 Largest Banks Listed on the Indonesia Stock Exchange During the Period 2018-2022). Economics and Business International Conference Proceeding, 1(2), 790–796. Retrieved from https://jurnalnew.unimus.ac.id/index.php/EBiC/article/view/489 (Original work published July 27, 2024)