The Effect of Liquidity, Leverage, Profitability, and Firm Size on the Bond Rating of Banking Sub Sector in Indonesia Stock Exchange 2014 – 2018

Ayu Lestari; Andam Dewi Syarif1

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Publication Date: 2020/08/30

Abstract: This study aims to detect empirical evidence regarding the effect of liquidity, leverage, profitability and firm size on bond ratings. The population in this study uses banking companies listed on the Indonesia Stock Exchange in the period 2014-2018. The sampling method used was purposive sampling. 10 banking companies that met the criteria were sampled. The data analysis method used is panel data regression analysis. Panel regression analysis model used is the Fixed Effect model. The data used are secondary data in the form of annual financial ratios. The results of this study on the partial test prove that firm size has an effect on bond ratings. The results also showed that liquidity, leverage, profitability had no effect on bond ratings. The simultaneous test results prove that simultaneously liquidity, leverage, profitability and firm size have a significant effect on the bond rating

Keywords: Bond Rating, Liquidity, Leverage, Profitability, Firm Size.

DOI: 10.38124/IJISRT20AUG320

PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT20AUG320.pdf

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