THE INFLUENCE OF FINANCIAL ASPECTS ON PROFIT GROWTH WITH MANAGERIAL OWNERSHIP AS MODERATION

Abstract

This study aims to analyze the effect of capital expenditure, inventory turnover, and debt-to-equity ratio on profit growth, with managerial ownership as a moderating variable. The research employs a quantitative method, using a population of primary consumer goods sector companies with managerial ownership, resulting in a sample of 50 companies. Data analysis was conducted using EViews 13 with panel data regression and moderated regression analysis (MRA), utilizing 66 samples. The findings indicate that capital expenditure and inventory turnover have a positive and significant effect on profit growth. However, the moderation test shows that managerial ownership does not moderate the relationship between capital expenditure, inventory turnover, debt-to-equity ratio, and profit growth. For future research, it is recommended to compare data before, during, and after the pandemic to observe emerging trends. The results confirm that capital expenditure and inventory turnover are key drivers of profit growth, suggesting that management should strategically focus on capital investments and inventory management to ensure sustainable profit growth in the eyes of investors.