The Effect of Profitability Ratio, Liquidity Ratio, Leverage Ratio, and Company Size on Sukuk Rating Corporation During 2014-2017 Periods

Suratmi,; Rahmawati, Ika Yustina

doi:10.1051/shsconf/20208601027

Cited by 3 publications

(6 citation statements)

References 6 publications

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“…Though this study did not manage to support signaling theory from the perspective of profitability, several prior studies found similar findings. Among those studies were Sihombing and Rachmawati (2015), Kustiyaningrum, Nurani & Wijaya (2017), and Suratmi & Rahmawati (2020).…”

Section: Discussion Of the Findingsmentioning

confidence: 99%

“…Elhaj et al (2015), Astuti (2017), Pebruari (2017), Haraqi and Ningsih (2018), Borhan and Ahmad (2018), Rofi (2020) and Rukmana and Laila (2021) reported that profitability has a positive impact on sukuk rating. Only a few previous studies found that profitability has no effect on sukuk rating such as Sihombing and Rachmawati (2015), Kustiyaningrum, Nurani & Wijaya (2017), and Suratmi & Rahmawati (2020), and (Muarif, Ibrahim, & Amri, 2021).…”

Section: Empirical Review On the Determinants Of Sukuk Ratingmentioning

confidence: 97%

“…In the case of firm size, a mixed finding was also observed in prior studies. Some earlier studies observed that firm size significantly impacted sukuk rating (Ni'mah et al, 2020;Rofi, 2020;Suratmi and Rahmawati, 2020;Sihombing and Rachmawati, 2015). Nevertheless, Borhan and Ahmad (2018) and Utami et al (2017) could not determine the impact of firm size on sukuk rating.…”

Section: Introductionmentioning

confidence: 93%

“…With regard to the effect of firm size on sukuk rating, several previous studies report that firm size had a positive impact on sukuk rating (Ni'mah et al, 2020;Rofi, 2020;Suratmi and Rahmawati, 2020;Sihombing and Rachmawati, 2015). However, studies like Borhan and Ahmad (2018) did not find any significant impact of firm size on sukuk rating in Malaysia.…”

Section: Empirical Review On the Determinants Of Sukuk Ratingmentioning

confidence: 99%

“…However, previous research on sukuk determination has produced a mixed picture. Some prior studies reported that sukuk rating was determined by profitability (Elhaj, Muhamed and Ramli, 2015;Astuti, 2017;Pebruari, 2017;Haraqi and Ningsih, 2018;Borhan and Ahmad, 2018;Rofi, 2020, Rukmana andLaila, 2021), but some other studies did not (Sihombing and Rachmawati, 2015;Kustiyaningrum, Nurani and Wijaya, 2017;Utami, Anitasari, Endhiarto, 2017;and Suratmi and Rahmawati, 2020). Similarly, some prior studies, such as Ni'mah et al (2020), Pebruary (2016), Astuti (2017), and Utami et al (2017), found liquidity as a significant determinant of sukuk rating.…”

Section: Introductionmentioning

confidence: 99%

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What Determines Corporate Sukuk Ratings in Indonesia?

Wardiwiyono

Imron²

2022

SJEKI

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Along with the dynamic development of the Islamic capital market, sukuk is rapidly evolving into an Islamic financial instrument in high demand. However, because every investment involves risks, investors must exercise caution when purchasing sukuk. Sukuk rating is one piece of information that investors can use when purchasing sukuk. However, because there are multiple sukuk rating agencies with different rating methods, investors must understand what factors influence sukuk rating. This study aims to investigate the factors influencing the rating of corporate sukuk in Indonesia. It is specifically intended to answer three research questions regarding the influence of 1) financial performance, 2) sukuk maturity, and 3) sukuk structure on sukuk rating. To achieve the goals, 67 sukuk from 14 different nonfinancial sukuk issuers were chosen from 2014 to 2020. Secondary data from PT PEFINDO on profitability, leverage, liquidity, firm size, sukuk maturity, sukuk structure, and sukuk rating were analyzed using ordinal logistic regression to test six research hypotheses. The findings show that firm size and sukuk maturity have a positive impact on corporate sukuk rating in nonfinancial sukuk issuers in Indonesia. The findings lend support to signaling theory and agency theory.========================================================================================================ABSTRAK - Determinan Apa yang Mempengaruhi Peringkat Sukuk di Indonesia? Seiring dengan dinamisnya perkembangan pasar modal syariah, sukuk berkembang pesat menjadi instrumen keuangan syariah yang semakin diminati oleh masyarakat baik di tingkat nasional maupun internasional. Namun demikian, karena setiap investasi mengandung risiko, investor tetap harus berhati-hati dalam membeli sukuk. Salah satu informasi yang bisa menjadi pertimbangan para investor dalam membeli sukuk adalah peringkat sukuk yang dikeluarkan oleh lembaga pemeringkat sukuk. Namun demikian karena lembaga pemeringkat sukuk yang jumlahnya lebih dari satu menggunakan metode yang berbeda-beda dalam melakukan pemeringkatan, investor perlu memahami faktor apa saja yang menjadi determinan dari peringkat sukuk. Penelitian ini ditujukan untuk menganalisis faktor-faktor yang mempengaruhi peringkat sukuk. Secara lebih khusus, penelitian ini didesain untuk menjawab tiga pertanyaan penelitian tentang apakah: 1) kinerja keuangan; 2) maturitas sukuk; dan 3) struktur sukuk berpengaruh terhadap peringkat sukuk. Untuk menjawab rumusan masalah tersebut, penelitian ini menggunakan data sekunder dari 67 sukuk korporasi yang diterbitkan oleh 14 perusahaan non keuangan dari tahun 2014-2020. Data berkaitan dengan profitabilitas, leverage, likuiditas, ukuran perusahaan, maturitas sukuk, struktur sukuk dan peringkat sukuk yang diterbitkan oleh PT PEFINDO dianalisis dengan menggunakan analisis regresi logistik ordinal untuk menguji enam hipotesis penelitian. Hasil analisis menunjukkan bahwa ukuran perusahaan dan maturitas masing-masing memiliki pengaruh positif terhadap peringkat sukuk. Temuan ini mendukung teori sinyal dan teori agensi.

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Section: Discussion Of the Findingsmentioning

confidence: 99%

Section: Empirical Review On the Determinants Of Sukuk Ratingmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 93%

Section: Empirical Review On the Determinants Of Sukuk Ratingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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What Determines Corporate Sukuk Ratings in Indonesia?

Wardiwiyono

Imron²

2022

SJEKI

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The Influence of Financial Ratios, Sukuk Structure and Corporate Governance on Sukuk Ratings

Dwitami

Suryanto

Noviarita

et al. 2021

mabsya

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This study aims to determine the effect of financial ratios, Sukuk structure, and corporate governance on the rankings of Sukuk issued by companies listed on the Sharia Securities List for the period 2014-2018. This study uses secondary data, namely financial reports and annual reports of companies listed in the 2014-2018 Sharia Securities List, Sukuk ranking data from the website of PT. PEFINDO and data on Sukuk were still circulating during the year of observation from the website of the financial services authority. A total of 34 Sukuk issued by companies listed on the Sharia Securities List during the study period became the population in this study. The sample obtained was 15 Sukuk during 5 years of observation, so that the final sample was obtained as many as 75 observation data. The research results prove that only the profitability ratio variable influences the Sukuk rating. Meanwhile, other variables, namely liquidity ratio, leverage ratio, activity ratio, Sukuk structure, and corporate governance, do not influence the Sukuk rating

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Impact of Managerial Ownership, Company Size and Capital Structure on Company Value Through Profitability in Company Sectors Property, Real Estate and Building Construction Listed on Indonesia Stock Exchange Period 2019–2021

Yosanti,

Evanta Br Tarigan,

Sauh Hwee

2023

Економіка та суспільство

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The research aims to test and analyze the influence of managerial ownership, the size of the company, and the capital structure on the value of a company with profitability as an intervening variable. In this study, the researchers used external data obtained from the Indonesian Stock Exchange, which processed data of the Company's property, real estate and building sectors listed during the period 2019-2021. Sampling using purposive sampling, where the population is 32 companies so in a three-year period of 96. The data analysis process is statistically tested using Structural Equation Modeling (SEM) with a Partial Least Square (PLS) approach and the processing medium is SmartPLS 3.2.9. The value of the company is still a factor that investors pay attention to the ratio used is Price to Book Value, which is a simple valuation method and can be used by investors to analyze whether the price of a stock is undervalued or overvalued. The sectors used in property, real estate and building construction have brilliant prospects and are supported by the government and the valuation of corporations belonging to them has a significant influence on the state. The sector of real estate, building and construction has a relatively stable PBV ratio to a relative stable share price, so the researchers are looking at other financial ratios that are related to profitability and can affect the value of the company. The results show that capital structure and profitability don’t effect the company, but managerial ownership and the size of a company have a negative effect on the company's value. Profitability cannot mediate the effect of managerial ownership, company size and capital structure on the company's value. With this research, the Company can increase the value of the Company and strive to profitability that benefits the investor or the company itself, then able to perform tasks or responsibilities for decision-making with stability and vigilance. Meanwhile, companies are able to evaluate the factors that can affect the value of the company and consider which items need to be upgraded. The research focuses on managerial ownership, company size, capital structure, company value and profitability. It's done because we're so interested in this phenomenon. Company value items are like mirrors that can reflect the company's market assessment and help investors determine the viability of the company to invest in.

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The Effect of Profitability Ratio, Liquidity Ratio, Leverage Ratio, and Company Size on Sukuk Rating Corporation During 2014-2017 Periods

Cited by 3 publications

References 6 publications

What Determines Corporate Sukuk Ratings in Indonesia?

What Determines Corporate Sukuk Ratings in Indonesia?

The Influence of Financial Ratios, Sukuk Structure and Corporate Governance on Sukuk Ratings

Impact of Managerial Ownership, Company Size and Capital Structure on Company Value Through Profitability in Company Sectors Property, Real Estate and Building Construction Listed on Indonesia Stock Exchange Period 2019–2021

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