The Influence of Solvency to the Profitability by Mediation of Activity Ratio in IDX Agricultural Sector
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Sep 18, 2021
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Abstract
The strengthening of natural resource governance in Indonesia had result a positive trend in the gross domestic product of the agricultural sector which made it more important and strategic. However, the performance of the agricultural sector in the stock market was in contrast to the contribution of the agricultural sector in Indonesia's Gross Domestic Product. The aim of this research was to find the dominance of solvency on profitability through the mediation of activity ratios. Quantitative data was processed using the causal associative method with moderating variables. The research results showed that there was a moderate and negative connection between solvency and profitability. Solvency was significant on profitability. Solvency experienced a reduction in the regression coefficient after the presence of mediation variable. There was a partial significance on solvency and activity ratio to the profitability. Thus, the activity ratio had a significant effect and was able to become a mediating variable on solvency to the profitability.
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PERDANA, Mila Dinda Putri; GEDE USTRIYANA, I Nyoman; ANAK.AGUNG.AYU WULANDIRA SAWITRI DJELANT, Anak.
The Influence of Solvency to the Profitability by Mediation of Activity Ratio in IDX Agricultural Sector.
SOCA: Jurnal Sosial Ekonomi Pertanian, [S.l.], v. 15, n. 3, p. 576- 585, sep. 2021.
ISSN 2615-6628.
Available at: <https://ojs.unud.ac.id/index.php/soca/article/view/76143>. Date accessed: 23 apr. 2024.
doi: https://doi.org/10.24843/SOCA.2021.v15.i03.p14.
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References
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Aziz, A., & Rahman, A. A. (2017). The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. International. International Journal of Economics and Financial Issues, 7(2). https://scholar.google.com/scholar?hl=id&as_sdt=0%2C5&q=The+Relationship+between+Solvency+Ratios+and+Profitability+Ratios%3A+Analytical+Study+in+Food+Industrial+Companies+listed+in+Amman+Bursa.+&btnG=
Bintara, R. (2020). The Effect of Working Capital, Liquidity and Leverage on Profitability. Saudi Journal of Economics and Finance, 04(01), 28–35. https://doi.org/10.36348/sjef.2020.v04i01.005
Brigham, E. F., & Houston, J. F. (2007). Fundamentals of financial management (Dasar-dasar Manajemen Keuangan). In Engineering and Process Economics (Vol. 3, Issue 3). Jakarta: Erlangga.
Dahiyat, A. (2016). Does Liquidity and Solvency Affect Banks Profitability? Evidence from Listed Banks in Jordan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1). https://doi.org/10.6007/ijarafms/v6-i1/1954
Dalci, I. (2018). Impact of financial leverage on profitability of listed manufacturing firms in China. Pacific Accounting Review, 30(4). https://doi.org/10.1108/PAR-01-2018-0008
Lay, A., & Wiksuana, I. G. B. (2018). Pengaruh Likuiditas, Solvabilitas dan Aktivitas Terhadap Profitabilitas Pada Perusahaan Mira-Mar Block Dili Timor Leste. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 7(2), 575–614. https://doi.org/10.24843/eeb.2018.v07.i02.p10
Demir, M. & Tuncay, M. (2012). Analysis of Activity and Profitability Ratios for Turkish Food Sector: A Research on Firms Traded On the ISE Food Sector (2000-2008 Period). The Journal of Faculty of Economics and Administrative Science, 17(2), 367–392. https://scholar.google.com/scholar?hl=id&as_sdt=0%2C5&q=Analysis+of+Activity+and+Profitability+Ratios+for+Turkish+Food+Sector%3A+A+Research+on+Firms+Traded+On+the+ISE+Food+Sector+%282000-2008+Period%29&btnG=
Djajadi, I. (2019). IDX Stock Index Handbook v1.0. Jakarta: BEI
Eckbo, B. E., & Kisser, M. (2020). The Leverage–Profitability Puzzle Resurrected*. Review of Finance. https://doi.org/10.1093/rof/rfaa032
Khidmat, W. Bin, & Rehman, M. U. (2014). Impact of Liquidity & Solvency on Profitability Chemical Sector of Pakistan. Emi, 6(February). https://scholar.google.com/scholar?hl=id&as_sdt=0%2C5&q=Impact+of+Liquidity+%26+Solvency+on+Profitability+Chemical+Sector+of+Pakistan&btnG=
Lubis, D. R. A., Jubi, J., Inrawan, A., & Grace, E. (2019). Analisis Leverage dan Aktivitas Dalam Mengendalikan Profitabilitas Pada PT Astra Otoparts, Tbk Yang Terdaftar di Bursa Efek Indonesia.. Financial: Jurnal Akuntansi, 5(1). https://doi.org/10.37403/financial.v5i1.88
RI, K. (2019). Pertumbuhan PDB Pertanian RI 2018 Melebihi Target. www.pertanian.go.id
Sartono, A. (2015). Manajemen Keuangan: Teori dan Aplikasi. (4th ed.). BPFE.
Sugiyono. (2015). Metode Penelitian dan Pengembangan Pendekatan Kualitatif, Kuantitatif, dan R&D. Metode Penelitian Dan Pengembangan Pendekatan Kualitatif, Kuantitatif, Dan R&D.
Suwandi, S., Thalia, J., Syakina, S., Munawarah, M., & Aisyah, S. (2019). Pengaruh Rasio Aktivitas, Solvabilitas dan Likuiditas Terhadap Profitabilitas pada Perusahaan Pertambangan Batubara. Journal of Education, Humaniora and Social Sciences (JEHSS), 1(3), 182–188. https://doi.org/10.34007/jehss.v1i3.42