The Effect Of Profitability And Liquidity On The Ranking Of Bonds In The Construction, Real Estate, And Property Sectors

Abstract

One form of funding that companies can do is by issuing bonds. This study was conducted to determine the significance of the effect of profitability and liquidity on bond ratings in the property, real estate and construction sectors. When investors are interested in buying bonds, there are several things that must be considered, one of which is the bond rating as a reference for the company's performance in paying its debts. Profitability bond rating is measured by the Return On Assets proxy, while liquidity is measured by the Current Ratio proxy and the rating agency used is PTPefindo. Sampling was done by purposive sampling. The data analysis method uses multiple linear regression using Eviews 10. The results of the research simultaneously show that Profitability with the proxy of Return On Assets and Liquidity with the Current Ratio proxy has an effect on bond ratings. Simultaneously Profitability and Liquidity have an effect on bond ratings.