An Empirical Analysis of the Effect of Interest Rate, Diversification and Firm Size on Financial Performance: A Case Study of the Property and Real Estate Industry

Authors

  • Sheilla Kurnia Asih*, Regina Maharani, Evi Mardiyani, Rina Ramadhani, Siti Komariah

Abstract

The highly increasing population growth caused the property and real estate industry to increase due to the encouragement of the need for housing, workplaces and recreation areas. However, the growth rate of the property and real estate industry is currently hampered and has an impact on the company's financial performance. The purpose of this study is to determine the factors that affect the performance of companies engaged in the property and real estate sectors listed on the Indonesia Stock Exchange (IDX). This research uses descriptive and verification methods. The research sample was taken using purposive during the period 2014 to 2018. From a population of 45 companies, there are 40 companies that became the research sample. The results of hypothesis testing in this study indicate that: Interest rates have a significant effect on profitability, business diversification has a significant effect on profitability and firm size has no effect on profitability.

Published

2020-12-04

Issue

Section

Articles