The Influence of Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER) towards Return on Investment (ROI) of PT. Multi Artha Guna Insurance in Indonesia Stock Exchange during Period 2010-2019

  • Nurfitri Martaliah Stai Ahsanta
  • Puji Wahyuli STAI Ahsanta Jambi, Indonesia
  • Salmia . STAI Ahsanta Jambi, Indonesia
Keywords: InsuranceDER, DAR, ROI, Insurance, DER, DAR, ROI

Abstract

The results of this study indicate the development of debt to asset ratio (DAR), debt to
equity ratio (DER), and return on investment (ROI) at PT. Multi Artha Guna Tbk
Insurance for the period 2010-2019. The results showed that the development of the Debt to
Asset Ratio (DAR) obtained was 1.01%, the development of the debt to equity ratio (DER)
was 2.56%, and the development of return on investment (ROI) was 0.037%. Based on the
t-test, it was found out that the debt to asset ratio did not partially have a significant effect
on return on investment because the t-observed value was smaller than the t-critical (-0.507
<1,860). This indicates that there was no significant effect on return on investment.
Meanwhile, the debt to equity ratio also did not partially have a significant effect on the return
on investment because the t-value value was smaller than the t-value (0.322 <1.860). This
means that there was no significant effect on return on investment. The coefficient of
determination (Adjust R Square) of 0.292 showed that the independent variable was able
to explain with a value of 29.2%. Meanwhile, the remaining 70.8% was explained by
other variables which were not included in the regression model

Published
2020-09-25
How to Cite
Martaliah, N., Wahyuli, P., & ., S. (2020). The Influence of Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER) towards Return on Investment (ROI) of PT. Multi Artha Guna Insurance in Indonesia Stock Exchange during Period 2010-2019. Management and Entrepreneurship Research Review, 1(3), 104-115. Retrieved from http://ejournals.fkwu.uniga.ac.id/index.php/MERR/article/view/145