This study aims to determine the magnitude of the effect of capital structure and liquidity on profitability in property and real estate companies listed on the Indonesia Stock Exchange period 2011-2016. The independent variable in this research is capital structure measured using debt to equity ratio and liquidity measured using current asset, while profitability as dependent variable which is measured using return on equity. The method used in this research is descriptive verificative method by using quantitative approach. The population in this study consists of 57 companies included in the property and real estate sector in Indonesia Stock Exchange period 2011-2016. The sample of research consist of 33 companies by using sampling technique that is purposive sampling. The data used is secondary data. The method of analysis used in this research is multiple linear regression analysis. The conclusion of the hypothesis is done by observing the coefficient of determination by considering the significant test result that is t-test and F-test significance level of 5%, which has been done classical assumption test such as normality test, multicollinearity test, heteroscedastity test, and autocorrelation test. All statistical calculations in this study were conducted using EVIEWS version 8. The results showed that the capital structure and liquidity effect on profitability either partially or simultaneously.
Volume 11 | 03-Special Issue
Pages: 497-503