The Effect of Company Growth and Leverage on Financial Performance in Manufacturing Companies in The Pulp and Paper Sub-Sector Listed On The Indonesia Stock Exchange for the Period 2021-2023

Elisabeth Dewi Anggraini; R. Y. Susanto; Moch Nurhidayat

Authors

Elisabeth Dewi Anggraini Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
R. Y. Susanto Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang
Moch Nurhidayat Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang

Keywords:

Company Growth, Leverage, Financial Performance, Manufacturing Companies, Pulp and Paper

Abstract

A company's performance can be assessed through its financial performance. Financial performance is one of the important indicators to assess the success of a company. This research aims to determine the effect of Company Growth and Leverage on the Financial Performance of the Pulp and Paper Subsector Companies listed on the Stock Exchange, both partially and simultaneously. The research sample was obtained using purposive sampling techniques, resulting in 9 sample companies for the research period 2021-2023. The data techniques used include documentation, with data analysis techniques employing classical assumption tests and multiple linear regression, while hypothesis testing utilized t-tests and f-tests. The results show that company growth has a positive and significant effect on financial performance, while leverage has a negative and significant effect. Simultaneously, both affect financial performance, so the balance between business expansion and debt management is very important. Manufacturing companies in the pulp and paper subsector need to manage growth optimally and maintain a healthy capital structure to maintain stable and sustainable financial performance

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Candrawati, H., Wahyudi, E., & Larasati, C. W. (2021). Pengaruh Profitabilitas dan Keputusan Investasi terhadap Nilai Perusahaan pada Industri Pulp & Paper Yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2019. Humanities, Management and Sciene Proceeding 2021.

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