Citation:

Isda Rizka Arrahmah, Yovin Andrian, Anugrah Ananda Putra, Surya Ramanda Putra, Sari Rusmita. "The Influence of Return on Assets (ROA) and Return on Equity (ROE) on Profit Growth in Mining Companies Listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 204-210, 2023.

Abstract:

The goal of this study is to ascertain whether the Return on Equity (ROE) and Return on Asset (ROA) have an impact on the profit growth of mining businesses that are listed on the Indonesia Stock Exchange (BEI) between 2018 and 2022. The study employs a quantitative methodology and makes use of secondary data from mining firms' annual reports. With a population of 16 enterprises, the sample is drawn using the purposive sampling strategy, yielding 80 observations (16 companies x 5 years). Multiple regression analysis, along with hypothesis testing, is the technique employed. The results of the study show that there is no relationship between mining businesses' profit growth and ROA or ROE. The fact that ROA and ROE cannot account for the fluctuation in profit growth at the same time is indicated by the coefficient of determination (R2) of 0.024. The results of the partial and simultaneous hypothesis testing indicate that ROE and ROA have little bearing on the rise of profits.

References:

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Keywords:

Return on Assets (ROA), Return on Equity (ROE), Profit Growth.