The Effect of Liquidity Ratio, Profitability Ratio, Company Size, and Leverage on Bond Rating in Construction and Real Estate Company

Abstract

This research aims to determine the significance influence of liquidity ratio,
profitability ratio, company size and leverage to bond’s rating on construction and
real estate companies. The data in this research is secondary data obtained from
Indonesia Stock Exchange. The sample used in this study was 16 companies that
issue obligation and listed on Indonesia Stock Exchange in 2014-2016, with
purposive sampling method. Methods of data analysis used in this study was
multiple linear regression test. The data processed by using SPSS 17. Based on the
result of the research that has been done, then it can be taken a few conclusions,
namely: Liquidity ratio does not affect the bond’s rating. Profitability ratio affect
the bond’s rating. Company size does not affect the bond’s rating. And Leverage
also does not affect the bond’s rating.
Keywords : Bond’s rating, Liquidity, Profitability, Size, Leverage.