THE EFFECT RETURN ON ASSET (ROA) AND NET PROFIT MARGIN(NPM) ITS IMPLICATION TOWARDS PROFITABILITY OF LISTED MANUFACTURING COMPANY IN INDONESIA STOCK EXCHANGE

Abstract

Nowadays, investors appear in much type of trading behavior and many types of the investor itself. It is happening because of the mind-set of each investor and based on the financial performance of the company. Investor tends to have the stock based on the company financial performance. That is why the profitability in company is important, to send the information about company performance to user. This research aim to investigate company’s in reporting financial statement to public. Profitability rreport is performance responsibility report of management to its shareholders. The research found that Profitability report is dependent variable. Variable Return on Asset (ROA), Net Profit Margin (NPM) by driver CSR (Corporate Social Responsibility) Independent variable. This research was designed using quantitative research which involves analysis of numerical data in an attempt to explain the matters observed. This research is using secondary data. The data of this research were gathered from Indonesia Stock Exchange since 2007 to 2011. This research using calculation by multiple regression models from Statistical Package for the social sciences 20.00. The finding has stated there are factors that significantly affect the Profitability.