Abstract:
This research examining factor influencing company’s profitability in
basic industry and chemical sector companies in Indonesia. The research
objective is to investigate the influence of financial performance and
macroeconomic factors that influence the company profitability. The
factor that used in this research is DER, TATO, Firm Size, and
macroeconomic factor are inflation and GDP. The research methodology
uses a quantitative method with multiple regression analysis to analyze the
influence of independent variables toward the dependent variable. This
sample adopt purposive sampling and panel data, and it was taken from
IDX and company official website that listed for period of 2012-2017 that
analyzed using fixed effect model that has been pass the classical
assumption test to ensure the valid result if the test. The result shows that
total assets turnover, firm size and GDP has partially significant influence
toward return on equity. However the inflation rate has positive
insignificant influence toward return on equity, while, debt to equity ratio
has negative significant influence toward return on equity. Simultaneously,
all independent variables have significant influence toward the
profitability that describe in 58.9972% while the other 41.0028% is
describe by other variable which are not examined in this research.
