THE EFFECT OF LIABILITIES AND EQUITY ON NET PROFIT IN BASIC MATERIALS SUB-SECTOR COMPANIES LISTED ON THE MAIN BOARD OF THE INDONESIA STOCK EXCHANGE (IDX) 2022–2024

Nofanolo Gulo; Mekar Meilisa Amalia; Facrul Rozi

doi:10.46576/prosundhar.v6i0.623

THE EFFECT OF LIABILITIES AND EQUITY ON NET PROFIT IN BASIC MATERIALS SUB-SECTOR COMPANIES LISTED ON THE MAIN BOARD OF THE INDONESIA STOCK EXCHANGE (IDX) 2022–2024

Nofanolo Gulo, Mekar Meilisa Amalia, Facrul Rozi

Abstract

This study aims to examine and analyze the effect of liabilities and equity on net profit in basic materials sub-sector companies listed on the Main Board of the Indonesia Stock Exchange (IDX) during the 2022–2024 period. This study adopts a quantitative approach with an explanatory design. The study population comprises 26 companies, from which 20 companies were selected via purposive sampling based on the availability and continuity of audited annual financial statements, yielding 60 observations. Multiple linear regression analysis was applied following the fulfillment of classical assumption tests (linearity, Kolmogorov-Smirnov normality, multicollinearity, Glejser heteroscedasticity, and Durbin-Watson autocorrelation) using SPSS. The partial test (t-test) results demonstrate that liabilities do not have a significant effect on net profit (t-count = 0.701 < t-table = 2.002; sig. = 0.486 > 0.05). Conversely, equity has a positive and statistically significant effect on net profit (t-count = 2.861 > t-table = 2.002; sig. = 0.006 < 0.05). Simultaneously (F-test), liabilities and equity exert a significant collective effect on net profit (F-count = 12.683 > F-table = 3.159; sig. < 0.001). The Adjusted R Square value of 0.284 indicates that 28.4% of the variance in net profit is explained by liabilities and equity, whereas the remaining 71.6% is influenced by other exogenous variables outside the estimated empirical model.

Keywords

Liabilities, Equity, Net Profit, Basic Materials, Capital Structure, Indonesia Stock Exchange

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DOI: https://doi.org/10.46576/prosundhar.v6i0.623