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Research Paper | Finance | Indonesia | Volume 7 Issue 3, March 2018

Effect of Employee Stock Ownership Program, Leverage, Size and Growth to Return on Equity at Manufactur Company

Gita Genia Fatihat | Norita ^[2]

Abstract: Financial performance is a description of condition company to assess profitability and return on equity. Financial performance can be influenced by many factors, that is ESOP, leverage, size and growth. The purpose of this paper is to examine the effect of ESOP, leverage, size and growth on financial performance. The financial performance used ROE method with dupont system. The paper includes a conceptual as well as empirical analysis, in which data from a sample of listed manufactur firms for the period from 2011 to 2015. The method of this paper is descriptive and verifikatif, method to describe research variables and explain the reliationship between variables with hypothesis testing. Data analysis technique is panel data model, use F test and T test. From the result of this study, it can be concluded that ESOP has a significant effect to ROE, leverage not significant to ROE, size has significant effect to ROE, and growth not significant to ROE. Future research can examine other variabels, such as funding policies, ownership structures, intellectual capital and good corporate governance. Researchers can take samples in other sectors, such as financial and insurance sector, service sector, property sector, or industry sector also.

Keywords: ESOP, leverage, size, growth, financial performance, ROE

Edition: Volume 7 Issue 3, March 2018,

Pages: 1323 - 1326

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