Jurnal Administrasi Bisnis JAB|Vol. 42 No. 1 Januari 2017| administrasibisnis.studentjournal.ub.ac.id
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According to Syamsuddin 2009: 54 to measure
the level of debt the company uses two ratios: a.
Debt to Asset Ratio DAR Debt to Asset Ratio DAR is a measurement of
the amount of the companys assets are financed by debt or equity. The higher the debt to asset
ratio, the greater the number of loans that are used in generating profits for the company.
DAR =
�� � � �� � � �
x 100
Source: Syamsuddin 2009:71 b.
Debt to Equity ratio DER This ratio shows the relationship between the
amount of debt provided by the creditor to the amount of equity capital provided by the owner
of the company Syamsuddin, 2009: 71. The calculation of Debt Equity Ratio is as follows:
Source: Syamsuddin 2009:71.
c. Definition of Financial Performance
Financial performance is a measuring instrument used to measure the quality of the company. The
financial performance of the company can be seen and measured by analyzing a companys financial
statements. Financial performance information in the past could be used as a basis for predicting future
financial position, it is important for investors to determine a company where it will invest will see the
extent of a companys financial performance. Profitability ratios used are as follows:
1
Return on Asset ROA This ratio describes the turnover of assets is
measured by volume sales. The greater this ratios getting better because the assets would be faster
turn around and make a profit. This ratio can be calculated from the ratio of net income to total
assets. Source:Brigham 2012:148
2 Return on Equity ROE
The most important, or bottom-line, accounting ratio is the return on common equity ROE,
found as follows:
ROE =
N i c C
i y
Source: Brigham 2013:113 d.
Hypothesis
The hypothesis is a temporary answer to the formulation of research problems, and formulation of
the problem has been expressed in the form of sentence statement. Is said to be temporary, because
new answers given by the relevant theory is not based on empirical facts Sugiyono, 2011: 64. Based
on the model and the concept of the hypothetical model developed several hypotheses to be tested in
this study as follows:
H1: Corporate Governance Perception
Index CGPI, Debt to Asset Ratio DAR, and Debt to Equity Ratio
DER affect on the Return On
Asset ROA
partially. H2: Corporate Governance
Perception Index CGPI, Debt
to Asset
Ratio DAR,
and Debt to Equity Ratio DER affect on the Return On
Equity ROE partially.
H3: Corporate Governance Perception
Index CGPI, Debt to
Asset Ratio
DAR, and Debt to Equity Ratio
DER affect on the Return on Assets
ROA simultaneously. H4: Corporate Governance
Perception Index CGPI, Debt
to Asset
Ratio DAR,
and Debt to Equity Ratio DER affect on the Return On
Equity ROE simultaneously.
3. RESEARCH METHODS
