The Effect of Leverage and Liquidity on Profitability: Study of The KBW NASDAQ Financial Technology Company for the 2017–2022 Period

Yusuf Murtadlo Hidayat (), I. Z. F. S. Ratu Dintha, Heraeni Tanuatmodjo and Nursyaharani Nabila
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Yusuf Murtadlo Hidayat: Universitas Pendidikan Indonesia
I. Z. F. S. Ratu Dintha: Universitas Pendidikan Indonesia
Heraeni Tanuatmodjo: Universitas Pendidikan Indonesia
Nursyaharani Nabila: Universitas Pendidikan Indonesia

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 581-586 from Springer

Abstract: Abstract This study aims to examine the impact of leverage and liquidity on profitability and to determine the specific effects of leverage and liquidity on profitability in KBW NASDAQ Financial Technology companies from 2017 to 2022. The research adopts a descriptive and verification approach, utilizing a quantitative method with a total sample of 15 companies within the KBW NASDAQ Financial Technology index. The data analysis technique employed is multiple regression analysis using EViews 12 software. The findings indicate that leverage has no significant effect on profitability, whereas liquidity has a positive impact on profitability. Based on these results, it is recommended that companies optimize asset utilization to enhance profitability by increasing sales, improving cost efficiency, and expanding market share. Effective leverage management is also crucial to prevent excessive financial burdens, ensuring the optimal use of funds to maintain financial stability and sustain long-term growth.

Keywords: Financial Technology; Leverage; Liquidity; Profitability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-817-2_68

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DOI: 10.2991/978-94-6463-817-2_68

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