THE EFFECT OF CAPITAL STRUCTURE, LIQUIDITY, COMPANY SIZE AND LEVERAGE ON FINANCIAL PERFORMANCE (STUDY OF COMPANIES LISTED ON THE JAKARTA ISLAMIC INDEX)

Abstract

This research aims to examine the influence of capital structure, liquidity, company size and leverageoono the financial performance of companies listed on the jakarta islamic Index for the 2019-2023 period. The variable used to measure capital structure is (DER), the liquidity variable is measured by (CR), the company size variable is measured by (SIZE), and leverage is measured by (DAR). The variable used to measure financial performance is (ROA). The population of this research is jakarta islamic Index companies registered on the BEI for the 2019-2023 period with a total of 30 companies. The sampling method used was purposive sampling resulting 27 samples of companies being sampled and included in this research. This research uses a quantitative approach, using documentation and literature study methods in collecting data, using secondary data. The analysis tecnique used is multiple linear regression analysis and hypotesis testing and classical assumption tests are also carried out which include normality tests, multicolinearity tests, heteroscedasticity tests and autocorrelation tests. The findings of this study indicate that partially capital structure and leverage affect financial performance while liquidity and firm size have no influence on financial performance. Simultaneously, it shows that there is an influence between capital structure, liquidity, company size and leverage on financial performance.