THE EFFECT OF DIGITAL TRANSFORMATION, LIQUIDITY, AND LEVERAGE ON PROFITABILITY IN TRANSPORTATION SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE
DOI:
https://doi.org/10.5281/zenodo.22720814Keywords:
Debt to Equity Ratio, Digital Transformation Disclosure Index, Liquidity, Profitability.Abstract
This study aims to examine the effect of digital transformation, liquidity, and leverage on the profitability of transportationsector companies listed on the Indonesia Stock Exchange (IDX). This study employs a quantitative approach using secondary data obtained from the annual reports and financial statements of transportation companies published through theIDX and each company's official website. A purposive sampling technique was applied, resulting in a sample of 24 companies observed over the 2021-2024 period, with a total of 96 firm-year observations. The analytical method used is panel data regression, with the Fixed Effect Model (FEM) selected as the most appropriate model based on the Chow and Hausman tests, processed using EViews 12. The results show that digital transformation, proxied by the Digital Transformation Disclosure Index (DTDI), has a negative and significant effect on profitability. Liquidity, proxied by the Current Ratio (CR),has a negative but insignificant effect on profitability, while leverage, proxied by the Debt to Equity Ratio (DER), has a positive but insignificant effect on profitability. These findings indicate that digital investment has not yet translated intohigher earnings within the study period, and that liquidity and capital structure decisions require careful managerial attention. The results are expected to provide practical considerations for company management in formulating digital transformation strategies, liquidity management, and funding structure policies to improve corporate profitability.
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