Macroeconomic Analysis Model, Financial Performance Against Share Traded With Profit as an Intervening Variable in Food and Beverage Sub-Sector Companies on The Indonesia Stock Exchange Period 2016 - 2020

Abstract

Smart investors will consider several aspects before investing to avoid the worst possibilities including the company's financial performance. This research aims to look at the macroeconomic analysis model, financial performance against share traded with profit as an intervening variable in food and beverage sub-sector companies in the Indonesia stock exchange for the period 2016 - 2020. Macroeconomic variables will be proxyed with indicators of inflation, exchange rates, interest rates and the money supply. Financial performance variables with current ratio indicators, quick ratio (proxy of liquidity), debt to assets ratio, debt to equity ratio (proxy of solvency), total assets turnover, fixed assets turnover and inventory turnover (proxy of activity), return on asset, return on equity, net profit margin, gross profit margin and operating profit margin (proxy of profitability) and earnings per share,  price earning ratio and price book value (proxy of market value). The investment approach can also be done by analyzing historical data from stock prices and linking it to share traded that occurs in the market. The research will use profit as an intervening variable, consisting of gross profit, operating profit and net profit. The company has different performance with significant differences in the food and baverages sub-sector, will affect the amount of sales and profits earned by the company. This research data uses secondary data published by relevant and competent parties. This study uses a component-based SEM (Structural Equation Modeling) analysis or variance, namely Partial Least Square (PLS), using Smart PLS 3.0 software. The results showed 1) macroeconomic variables had no effect on financial performance. 2) Macroeconomic variables have no effect on profits. 3) Macroeconomic variables have no effect on share traded. 4) Financial performance variables affect profits. 5) Financial performance variables affect share traded.  6) The profit variable affects the traded share.