FACTORS AFFECTING SUSTAINABLE GROWTH RATE ON MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE PERIOD 2015-2018

  • Aldi Priyanto Universitas Kristen Satya Wacana
  • Robiyanto Robiyanto Universitas Kristen Satya Wacana
Keywords: Sustainable Growth Rate, Current Ratio, Debt to Equity Ratio, Asset Turnover

Abstract

Many companies only focus on income and profits. However, income and profits cannot be the main focus because the growth of the company's sustainability becomes important. Measuring sustainable growth is an important factor in looking at improving company performance. This measurement uses the concept of growth which is commonly called the Sustainable Growth Rate (SGR). This study aims to provide empirical evidence that is approved or not, liquidity is varied by Current Ratio (CR), leverage is variable Debt to Equity Ratio (DER), and efficiency is variable by Asset Turnover (TATO). The population used in this study is manufacturing companies incorporated in the Indonesia Stock Exchange (IDX). The technique used in taking the number of samples is purposive sampling in order to obtain a sample of 50 companies in the 2015-2018 research period. Data were analyzed using panel data regression techniques. The results of the study found that the Current Ratio (CR) and Asset Turnover (TATO) variables did not have a significant effect on SGR while the DER variable had a positive effect on SGR. This research tells us that SGR is very important because it is related to the strategy used by the company in order to experience sustainable growth.

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Published
2020-05-02
How to Cite
Priyanto, A., & Robiyanto, R. (2020). FACTORS AFFECTING SUSTAINABLE GROWTH RATE ON MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE PERIOD 2015-2018. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 1-21. https://doi.org/10.31955/mea.vol4.iss2.pp1-21