THE EFFECT OF COMPANY GROWTH, LIQUIDITY, AND GOOD CORPORATE GOVERNANCE ON PROFITABILITY

Abstract

This study aims to examine the effect of Company Growth, Liquidity, and Good Corporate Governance
on Profitability in the industrial sector listed on the Indonesia Stock Exchange for the period 2019-2022. This research is a quantitative research and uses purposive sampling method to collect sampling.
Data collection in this study used secondary data taken from the website www.idx.co.id. Based on the
established criteria, there are 40 companies out of 52 companies that match. In this study the
independent variables are company growth which is proxied by growth assets, liquidity is proxied by
the current ratio, and good corporate governance is proxied by independent commissioners. The
dependent variable of this research is Profitability which is proxied to Return on Equity (ROE). The
analytical tool used is multiple linear regression . The results of the regression analysis show that
simultaneously Company Growth, Liquidity, and Good Corporate Governance affect profitability by
33.4%, while 66.6% is influenced by other factors. Partially, company growth, liquidity, and good
corporate governance have a significant positive effect on profitability. That the magnitude of the
company's profitability is influenced by company growth, liquidity, and good corporate governance