The Effect of Firm Attributes on Profitability in Insurance Companies Listed on Indonesian Stock Exchange for the Period 2022-2024

Abstract

This study aims to analyze the effect of firm size, firm age, liquidity, and leverage on the profitability of insurance companies listed on the Indonesia Stock Exchange during the 2022 to 2024 period. The study focuses on the insurance sector by using the entire population as a research sample (saturated sampling), with a final number of observations of 51 observations. The data is obtained from the Annual Financial Statements of insurance companies and processed using the Eviews 12. The result of this study indicate that firm size has a negative impact  of profitability, while firm age has no impact on profitability. Meanwhile, liquidity and leverage have a positive impact on the profitability of insurance companies. This finding suggests that profitability depends not only on the scale of the company, but also on the ability to manage finances efficiently. Companies with optimal liquidity and leverage tend to be able to increase profits through good cash flow management and capital structure. These results emphasize the importance of the internal corporate management in creating healthy and sustainable financial performance. This study provides practical implicatios for insurance company management in formulating resource management strategies as well as for investors in evaluating the company’s financial performance. This study is also expected to be a reference fo the future research, especially studies that aim to examine other internal factors affecting the profitability of companies in the financial sector.