Determinants of Corporate Financial Performance: A Study in the Indonesian Capital Market

ABSTRACT: This study aims to examine the influence of various factors on the financial performance of companies listed on the Indonesia Stock Exchange (IDX) under the IDXHIDIV20 index from 2015 to 2022. The research employs purposive sampling to collect data, utilizing secondary data sourced from annual financial reports. The independent variables in this study include leverage (DER), liquidity (CR), capital structure (DAR), sales growth (SG), and firm size (ASSETS), while the dependent variable is return on assets (ROA), which serves as a proxy for corporate performance. The study analyzes data from 12 companies out of a total population of 20. Multiple linear regression analysis is used to evaluate the data. The findings reveal that leverage, liquidity, and capital structure do not significantly impact corporate performance. In contrast, sales growth has a positive effect, while firm size negatively influences corporate performance.