Company Performance on The Indonesia Stock Exchange: The Effect of Leverage, Profitability and Board Size

Authors

Keywords:

Leverage, Profitability, Board Size, Indonesia Stock Exchange

Abstract

This study aims to analyze the effect of leverage, profitability, and board size on company performance. Market performance is measured using the Tobin's Q ratio, while leverage is measured by the Debt-to-Equity Ratio (DER), profitability by Return on Assets (ROA), and board size by the proportion of the number of commissioners to the total board members. This study uses a quantitative approach with a multiple regression method. Data processing was carried out using IBM SPSS Statistics software version 24. The research sample consisted of 10 companies engaged in the consumer cyclicals, consumer non-cyclicals, and energy sectors listed on the Indonesia Stock Exchange (IDX) in the 2021–2024 period. The results of the analysis show that leverage and board size have a significant positive effect on Tobin's Q, but profitability (ROA) does not have a significant effect on Tobin's Q.

Published

2025-07-12

Issue

APSKI ICE Vol 03, Ed 01 (2025)

Section

Articles

License

Copyright (c) 2025 APSKI International Conference on Association of Indonesian Entrepreneurship Study Programs

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