Research Paper
Year: 2022 | Month: July | Volume: 9 | Issue: 7 | Pages: 49-59
DOI: https://doi.org/10.52403/ijrr.20220707
The Effect of Operating Leverage, Financial Leverage, Profitability, Company Size, and Asset Growth on Systematic Risk in Manufacturing Companies Listed on The Indonesia Stock Exchange
Pebrina Sabatini Turnip1, Iskandar Muda1, Rujiman1
1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara,
Corresponding Author: Pebrina Sabatini Turnip
ABSTRACT
This study examines and analyzes the effect of Operating Leverage, Financial Leverage, Profitability, Company Size, and Asset Growth on Systematic Risk in Manufacturing Companies Listed on the Indonesia Stock Exchange. The population in this study was 169 manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period, with a saturated sampling technique, namely a census sampling technique where the entire population was sampled, but only 132 samples. The data analysis method used descriptive statistical tests, classical assumption tests, and panel data regression analysis with statistical data processing software tools, namely Eviews.
The study results of financial leverage and asset growth positively and significantly affect systematic stock risk. In contrast, company size negatively and significantly affects systematic stock risk. Operating leverage, profitability, and accounting beta variables do not significantly affect the systematic risk of stocks in Manufacturing companies listed on the IDX for the 2016-2020 period.
Keywords: operating leverage, financial leverage, beta accounting, systematic risk..
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