jbm@fe.unpad.ac.id
Dear Dr. Sulaeman Rahman Nidar:

I believe that you would serve as an excellent reviewer of the manuscript, "FACTORS INFLUENCING PROFITABILITY: A STUDY OF MINING COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE," which has been submitted to Jurnal Bisnis dan Manajemen. The submission's abstract is inserted below, and I hope that you will consider undertaking this important task for us.

Please log into the journal web site by 2022-01-26 to indicate whether you will undertake the review or not, as well as to access the submission and to record your review and recommendation.

The review itself is due 2022-02-02.

Submission URL: http://journal.feb.unpad.ac.id/index.php/jbm/reviewer/submission/123?key=ACCESS_KEY

Thank you for considering this request.

Prof. Yudi Azis
SCOPUS ID: 36705674300, Universitas Padjadjaran
yudi.azis@unpad.ac.id



"FACTORS INFLUENCING PROFITABILITY: A STUDY OF MINING COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE"

Abstract

The objective of this research is to empirically identify the profitability determinants of mining companies listed on the Indonesian Stock Exchange from 2015 - 2019. Those determinants of profitability investigated in this study are Liquidity, Firm Size, Leverage and Asset Structure with ROA as the proxy of profitability. This study employs panel data regression with Fixed Effect Model using STATA software and the result of the research found the following: (1) Liquidity has a positive impact on profitability, (2) Firm Size has a positive impact on profitability, (3) The negative impact of Leverage on profitability is not supported, (4) Asset Structure does not have a significant effect on profitability. Because the evidences suggested that liquidity is one of the drivers of profitability in mining companies in Indonesia, it is advised for these companies to reexamine their liquidity management and try strive to achieve a balance between the benefits and risk associated with liquidity. Furthermore, leverage is also found to be, in general, positively correlated with profitability. Thus, the mining firm suggest to funding more of their business and expansion project with debt in order to quickly raise fund and also take benefits of the debt tax shield that comes with it. However, it needs to be noted that there is a diminishing return on leverage and there is a limit where the risk of bankruptcy outweighs the benefit of the leverage so managers should evaluate the optimal leverage for their specific companies.

 
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Jurnal Bisnis dan Manajemen
http://journal.feb.unpad.ac.id/index.php/jbm