FAKTOR-FAKTOR YANG MEMPENGARUHI FINANCIAL STRENGTH INDUSTRI MANUFAKTUR DI INDONESIA

Abstract

Financial strength caused by external and internal factors.The method of data collecting is purposive sampling methodas the purpose of research. The study will be used criteria for sampling a company listed on the Indonesia Stock Exchange before 1993 and has published financial reports for two consecutive years, and the company's data available complete. From 141 companies listed in Indonesia Stock Exchange there are 59 companies that meet the criteria and used as a sample.Measurement of financial strength of the firm is the financial strength indexwhich is the opposite of financial difficulties.Regression analysis use to find empirical evident what’s factors that influence financial strength.The result showed that the ratio of working capital, retained earnings ratio, return on assets and stock prices influence positive and significant on the financial strength. Sales ratio does not affect the ability of a company's financial. The variance of dependent variabel can be explained by independent variable abaut 48.2 percent while the restexplained by others outside.