PENGARUH UKURAN PERUSAHAAN DAN LEVERAGE TERHADAP PROFITABILITAS STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2016-2018

Abstract

This study aims to determine the effect of company size on profitability and determine the effect of

leverage on profitability. The main goal of companies that have gone public is to increase the prosperity of  owners or  shareholders through increased profitability. Intense  competition in various  aspects  is  unavoidable,  especially  in  the  business  or  corporate  world.  Therefore  a company must be able to maintain and maintain its business environment efficiently. The higher the profitability, the higher the company's ability to generate profits for the company. Without profit, of course the company cannot fulfill its objectives. Profitability is the level of net profit achieved by the company when running its operations. The greater the profits obtained, the greater the company's ability to pay dividends, and this has an impact on increasing the value of the company. In this study, researchers used ROA (return on assets) as a measure of profitability. ROA is certainly not only an indicator for company owners to evaluate the extent to which existing management has worked in optimizing its functions and duties in improving company performance and also the welfare of company owners, but also is able to be a source of information for investors who will invest their capital in the company . So it can be said that the higher the ROA, investors will be more interested in investing, and vice versa.