Pengaruh Leverage, Diversifikasi Produk dan Ukuran Perusahaan Terhadap Profitabilitas

Abstract

This research aims to examine the influence of product diversification, leverage, and the size of the company toward profitability. The sample in this research totalled 170 general insurance company which is registered in the financial services authority (OJK). Technique of data analysis using multiple regression analysis. The results showed that the company's size and leverage has positive influence towards profitability. While the product diversification effect negatively to the company's profitability. The results of this study illustrate that the utilization of capital structure and asset management can improve the company's profit growth. This research is important for the company or organization in order to better manage corporate liabilities and implementing corporate strategy wisely. The study was limited to General insurance company which is registered in Indonesia Financial Services Authority (OJK) period 2014 until 2016, then further research is recommended to use a sample from another industry and use other variables based on the theory that supports and a longer period.