The Effect of Financial Ratios on the change in Earnings in Jakarta Islamic Index (JII) and FTSE Bursa Malaysia Hijrah Shariah Index (FBMHS) Period 2017-2018

• Autorzy: Khoirunnisa Abidah , Negina Kencono Putri , Warsidi Warsidi
• Języki publikacji: EN

Abstrakty

EN

This study takes the title "The Effect of Financial Ratios on The Changes in Earnings in Jakarta Islamic Index (JII) and FTSE Bursa Malaysia Hijrah Shariah Index (FBMHS) for the 2017-2018 period." This study aims to determine the effect of liquidity ratios, solvency ratios, and profitability ratios on changes in earnings of listed companies in the Jakarta Islamic Index (JII) and the FTSE Bursa Malaysia Hijrah Shariah Index (FBMHS). This study uses quantitative methods with secondary data in the form of financial statements of companies registered in JII and FBMHS in 2017 to 2018. The study population is all companies registered in JII as many as 30 companies and registered in FBMHS as many as 30 companies within a period of two years. From the total of 60 companies, 29 companies were selected as the research samples using the purposive sampling method. This study uses multiple linear regression analysis techniques. The results show that the liquidity ratio that is current ratio significantly positive effect, while the solvency ratio that is debt to equity ratio, and profitability ratios that is return on assets have a positive not significant effect on earnings changes. In addition, the results of research conducted to examine the differences in earnings changes between JII and FBMHS show no difference in earnings changes on the two Islamic Stock Indexes. But on the other hand, the results of the study showed a difference in the solvency ratio, that is debt to equity ratio between JII and FBMHS. The implications of this research are as a consideration for companies to increase profits from year to year, as a material consideration for investors before investing, and a motivation for next researchers. (original abstract)

Słowa kluczowe

EN

Financial indicators; Debt ratio; Profit

PL

Wskaźniki finansowe; Wskaźnik zadłużenia; Zysk

• Czasopismo: Roczniki Naukowe Wyższej Szkoły Bankowej w Toruniu
• Rocznik: 2020
• Numer: nr 19(1)
• Strony: 21--36

Twórcy

autor

Khoirunnisa Abidah

• Universitas Jenderal Soedirman, Indonesia

autor

Negina Kencono Putri

• Universitas Jenderal Soedirman, Indonesia

autor

Warsidi Warsidi

• Universitas Jenderal Soedirman, Indonesia

Bibliografia

• 1. Scott, W. R. (2012). Financial Accounting Theory 6th edition. Toronto: Pearson Education Canada.
• 2. Wolk et al. (2001). Accounting Theory: A Conceptual an Institutional Approach. Fifth Edition. South-Western College Publishing.
• 3. Kolstad, Ivar. (2007). Why Firms Should Not Always Maximize Profits. Journal of Business Ethics , 76 (2), 137-145
• 4. Kuncoro, Mudrajat. (2011). The Global Economic Crisis And Its Impact On Indonesia's Education. Journal of Indonesian Economy and Business, 26(1), 47-63
• 5. Johnson, G. (1997). Changes in Earnings Inequality: The Role of Demand Shifts. The Journal of Economic Perspectives, 11(2), 41-54.
• 6. De Jasay, A. (1956). Liquidity Ratios and Funding in Monetary Control. Oxford Economic Papers, 8(3), new series, 245-251.
• 7. Ibendahl, G. (2016). Using Solvency Ratios to Predict Future Profitability. Journal of ASFMRA, 195-201.
• 8. Horrigan, J. (1965). Some Empirical Bases of Financial Ratio Analysis. The Accounting Review, 40(3), 558-568.

Identyfikatory

DOI

https://doi.org/10.19197/tbr.v19i1.319