Research Paper
Year: 2022 | Month: December | Volume: 9 | Issue: 12 | Pages: 413-423
DOI: https://doi.org/10.52403/ijrr.20221247
Analysis of the Effect of Current Ratio, Company Size, Capital Structure and Operating Cash Flow on Financial Growth with Profitability as An Intervening Variable in the Company Registered Mining Sector on the Indonesian Stock Exchange
Poncho Gardy Simanjuntak1, Khaira Amalia Fachrudin2, Syahyunan3
1,2,3Faculty of Economics and Business University of Sumatera Utara, Medan, Indonesia.
Corresponding Author: Poncho Gardy Simanjuntak
ABSTRACT
This study aims to analyze the effect of current ratio, company size, capital structure and operating cash flow on financial growth with profitability as an intervening variable in mining sector companies listed on the Indonesia Stock Exchange. Data were obtained from secondary data in the form of financial statements of 39 companies for the 2016-2020 period through the website www.idx.co.id. The data analysis method used is panel data regression analysis. Current Ratio has a negative but not significant effect on Financial Growth. Company size has a negative effect on Financial Growth, Capital Structure has a negative but not significant effect on Financial Growth, Operating Cash Flow has a negative but not significant effect on Financial Growth. Current Ratio has a negative but not significant effect on Profitability. Firm size has a positive and significant effect on profitability. Capital structure has a positive and significant effect on profitability. Operating Cash Flow has a positive but not significant effect on Profitability. Profitability has a positive and significant effect on financial growth. The effect of Current Ratio on Financial Growth, through Profitability is not significant. The influence of Company Size on Financial Growth, through Profitability is significant. The effect of Capital Structure on Financial Growth, through Profitability is significant. Effect of Operating Cash Flow on Financial Growth, through Profitability is not significant.
Keywords: Current Ratio, Company Size, Capital Structure, Operating Cash Flow, Profitability, Financial Growth
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