The Effect of Capital Structure, Liquidity, and Company Size on Profitability in LQ-45 Index Companies on the Indonesia Stock Exchange

Abstract

The object of this study is the LQ-45 Index companies listed on the Indonesia Stock Exchange (IDX) with the aim of determining the effect of capital structure, liquidity, and company size on profitability. The research method used in this study is quantitative with a causal associative approach. The researcher used 62 LQ-45 Index companies listed on the Indonesia Stock Exchange from 2021 to 2023 as the population for this study. The research sample consisted of 20 companies, resulting in a total of 60 samples over a three-year research period. The sample was determined using purposive sampling. The data source used in this study was secondary data from the financial reports of LQ-45 Index companies listed on the Indonesia Stock Exchange from 2021 to 2023. The data analysis method used in this study was multiple linear regression analysis. The results of this study are partial, namely that capital structure has a significant effect on profitability. Liquidity has a significant effect on profitability. Firm size has a significant effect on profitability.