THE EFFECT OF LIQUIDITY , PROFITABILITY AND LEVERAGE ON THE MARKET CAPITALIZATION ( In Industrial Sector Agriculture And Mining In Indonesia Stock Exchange )

Abstract

This study aims to have improving empirical evidence of the effect of liquidity,
leverage and profitability on the market capitalization. In this study, the samples are 19
companies that are in the agriculture and mining industries group in Indonesia Stock
Exchange. The type of data used is secondary data obtained through the company's financial
statements going public. In this study, the two categories of variables. The first is the
dependent variable is market capitalization. The second is an independent variable, which
consists of the current ratio, debt to equity ratio and return on assets. The process of
hypothesis testing is done by using multiple regression analysis. Based on the data processing
has been performed in current ratio and debt-to- equity ratio does not significantly on the
market capitalization , while the return on assets is a significant effect on market
capitalization in agriculture and mining companies in Indonesia Stock Exchange.
Keywords : Current Ratio, Debt to equity ratio and Return on Assets