JAMBU AIR : Journal of Accounting Management Business and International Research
Vol 2, No 1 (2023): April 2023

Effect of Debt to Equity Ratio and Efficiency on Return on Equity in Defense Sector Companies

Akhmad Firmansyah Buhroni (Universitas Pertahanan Republik Indonesia)
Ivan Yulivan (Universitas Pertahanan Republik Indonesia)
Lukman Yudho Prakoso (Universitas Pertahanan Republik Indonesia)



Article Info

Publish Date
04 Apr 2023

Abstract

Indonesia is a country that has so many islands, that's why Indonesia is often called a maritime country. In the Law of the Republic of Indonesia No. 16 of 2012 concerning the Defense Industry it is given to companies in the defense industry immediately, but rather a set of regulations, terms and conditions that must first be fulfilled by companies in the Defense Industry. The success of a company can be seen from the level of ROE or (Return On Equity). However, the Defense Sector Company's net profit from 2011-2020 is still relatively small. This study uses a quantitative approach. The samples used in this study were 3 companies including PT Dirgantara Indonesia, PT PAL Indonesia and PT Pindad with a period of 10 years. The results of this study indicate that DER has a negative effect on ROE, efficiency has a positive effect on ROE, and the magnitude of the influence of Debt To Equity Ratio (DER) and Efficiency on Return On Equity in defense sector companies is 66.3% and the remaining 33.7% is explained by the variable others that were not examined in this study.

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Journal Info

Abbrev

jambu

Publisher

Subject

Economics, Econometrics & Finance

Description

JAMBU AIR: Journal of Accounting Management Business and International Research is receives rigorous research articles that have not been offered for publication elsewhere. JAMBU: Journal of Accounting Management and Business on the research related to accounting and business that are relevant ...