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CHAPTER III RESEARCH METHODOLOGY
A. FRAMEWORK
This study will begin from early research on the company property in Indonesia Stock Exchange. The basis of calculation in this study will be used from
the literature study that has been engraved in Chapter 2. After getting the data that is needed, then the next will be analyzed the extent of the influence of the current ratio,
activity ratio, debt ratio, and inflation to profitability ratio that later can be a conclusion and suggestions for Real Estate Company in Indonesia Stock Exchange.
B. RESEARCH DESIGN
This study used quantitative research methods with associative approach. The research method according Sugiyono 2012: 3 states that the research method is
basically a scientific way to get data with the purpose and usefulness. Quantitative research methods according Sugiyono 2012: 13 states that the research method that
is based on the philosophy passivism, used to examine the population or a particular sample, data collection using research instruments, quantitative data analysis
statistics, with the aim to test the hypothesis that has been set . Research associative according Sugiyono 2012: 36 is a study that aims to determine the relationship of
two or more variables. In this study it will be able to build a theory that can be functioning to explain, predict, and control the symptoms.
Population is a group of object which has characteristic similarity in one or more things and creates main problem in a specific research. Hence, sample is a part
of population which its characteristic will be observed and considered as representative of all population Sugiyono, 2011:39.
26 The sampling method used in this research is purposive sampling method.
Purposive sampling is a method which its sample is chosen based on compatibility between characteristic and sample criteria defined in order to reach representative
sample. Those criteria are as follows: 1. Population in this research is all of the property and real estate companies
that their financial reports are published by IDX in period 2010-2013. 2. Annual financial reports of those companies are published regularly, have
complete financial data, and have components of calculation indicator which are needed in this research.
3. The purposive sampling was used to select the sample. Of the 19 companies listed, only eight 8 companies that meet criteria in four years’ time series.
Therefore, a total of 32 annual reports of companies.
C. OPERATIONALIZATION OF VARIABLES
