PENULIS
TANGGAL
ABSTRAK
his study is motivated by the increasing competition in the food and beverage industry in Indonesia, which requires companies to manage their financial structure and performance effectively in order to enhance firm size. Leverage and profitability are considered influential factors; however, previous studies have shown inconsistent findings. Therefore, this study aims to analyze the effect of leverage and profitability on firm size in food and beverage companies listed on the Indonesia Stock Exchange during the 2021–2023 period. This research employs a quantitative approach with an associative research design. The data used are secondary data obtained from companies’ financial statements. The sampling technique applied is purposive sampling, resulting in 34 companies as the research sample. Leverage is proxied by the Debt to Equity Ratio (DER) and Debt to Asset Ratio (DAR), while profitability is measured using Return on Assets (ROA) and Return on Equity (ROE). The data analysis method used is multiple linear regression with hypothesis testing conducted through partial tests (t-test) and simultaneous tests (F-test). The results show that partially, DER, ROA, and ROE do not have a significant effect on firm size, while DAR has a significant negative effect. However, simultaneously, leverage and profitability have a significant effect on firm size. The coefficient of determination indicates that most of the variation in firm size is explained by the model, while the rest is influenced by other factors. Thus, leverage and profitability jointly play an important role, although their individual effects are not dominant.