Logistic Regression Analysis to Determine Factors Affecting Asset Growth Based on Financial Performance In LQ45 Indexed Companies

Abstract

Asset growth describes how the company invests its own funds for operations and investments. Asset growth is a change (increase or decrease) in the total assets owned by a company. This study aims to examine total assets, total liabilities, total equity, total revenues, dividends, Earnings Per Share (EPS), Book Value (BV), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Return On Asset (ROA), Return On Equity (ROE), Gross Profit Mergin (GPM), Operating Profit Margin (OPM), Net Profit Margin (NPM), payout ratio, and yield which has a significant effect on asset growth based on financial performance in LQ45 indexed companies in 2016–2019. The population used in this study is LQ45 indexed companies listed on the Indonesia Stock Exchange in 2016–2019, the data used in this study is secondary data. The total sample is 56 enterprises. We analyse the data with binary logistic regression analysis. The results showed that total assets, total liabilities, total revenues, dividends, Earnings Per Share (EPS), Book Value (BV), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Return on Asset (ROA), Return on Equity (ROE), Gross Profit Mergin (GPM), Net Profit Margin (NPM), and payout ratio did not have a significant effect on asset growth. Financial performance that has a significant effect on asset growth obtained 3 free variables, namely total equity, Operating Profit Margin (OPM), and yield. Other variables, although they have an influence, do not have a significant effect on asset growth. The result of reseach from the sixteen variables, three variables were found that had an effect on the response.