The Effect of DAR, Asset Growth, and DER on ROA in Indonesian CPO Companies with ROE Serving as an Intervening Variable

Khaeril Anwar Junaedi; Muhammad Ali; Mursalim Nohong; Arifuddin Arifuddin

doi:10.35877/454RI.daengku4909

Authors

Khaeril Anwar Junaedi Universitas Hasanuddin
Muhammad Ali Universitas Hasanuddin
Mursalim Nohong
Arifuddin Arifuddin

DOI:

https://doi.org/10.35877/454RI.daengku4909

Keywords:

Debt to Asset Ratio, Asset Growth, Debt to Equity Ratio, Return on Assets, Return on Equity, Crude Palm Oil Type

Abstract

This study aims to evaluate the direct effects of the Debt to Asset Ratio (DAR), Asset Growth (AG), and Debt to Equity Ratio (DER) on the Return on Assets (ROA) of Crude Palm Oil (CPO) companies listed on the Indonesia Stock Exchange in 2025. It also examines the role of Return on Equity (ROE) as an intervening variable in explaining the relationship between capital structure, company growth, and profitability. The research methodology employs path analysis, with the path coefficient values indicated by the coefficients of multiple linear regression. The path coefficients for DAR, AG, DER, and ROE in relation to ROA were found to be 0.376, 0.025, -0.405, and 0.807, respectively, with a p-value of ?0.003. In contrast, the path coefficients from DAR, AG, and DER to ROE were -0.745, 0.128, and 0.574, respectively, with a p-value of ?0.060. When analyzing the influence of ROE on ROA, the Sobel Test results indicated that the p-values for the DAR, AG, and DER variables were 0.000, 0.060, and 0.000, respectively. These results suggest that ROA is significantly influenced directly by DAR, AG, DER, and ROE. Additionally, ROE is significantly affected by DAR, AG, and DER. It was also demonstrated that ROE plays a substantial mediating role in the relationship between ROA.

Author Biographies

Muhammad Ali, Universitas Hasanuddin

Ali, Muhammad: Permanent lecturer at the Department of Management, Faculty of Economics and Business (FEB), Hasanuddin University since 1987. Served as Professor in the field of Financial Management since 2008. Lecturer in undergraduate and postgraduate programs FEB Hasanuddin University and has been an external examiner of doctoral promotions at several universities. Written various national and international journals and scientific articles. Previously served as Head of the Management Department, Dean of FEB, Vice Rector for General Administration, Finance and Resources, and Dean of the Graduate School, Hasanuddin Universty.

Mursalim Nohong

Nohong, Mursalim: Permanent lecturer at the Department of Management, Faculty of Economics and Business (FEB), Hasanuddin University since 2000. Served as Professor in the field of Financial Management. Graduated from the Bachelor's program in the Management Department of FEB Hasanuddin University in 1997, Master of Science (M.Sc.) in the Management Science Study Program UNAIR in 2001, and Doctoral Program in Management Science Universitas Brawijaya in 2012. In addition to actively teaching at the FEB, Hasanuddin University, he also actively provides materials related to entrepreneurship, SME finance, Financial Management and Public Sector Assets. In 2021, he published a book entitled Research on Strategic Management from the Perspective of Public Sector Organizations, and a Model for Improving the Financial Performance of Small and Medium Enterprises Based on Financial Literacy in 2022.

Arifuddin Arifuddin

Arifuddin: Permanent lecturer and served as Professor at the Department of Accounting, FEB Hasanuddin University since 1992. Professor in the field of Audit. Completed Bachelor's Degree in Accounting Department FEB Hasanuddin University in 1991, Master of Accounting in Accounting Science Study Program Diponegoro University Semarang in 2003, and in 2012 completed the Doctoral Program in Accounting Science at Diponegoro University Semarang. In addition to actively teaching at the FEB Hasanuddin University. He is also active as an Expert in Several Regional Governments. He has published a number of books such as books entitled Regional Government Accounting Policy 1 and 2, Regional General Hospital Accounting System, Regional Government Accounting System, Accounting Policy and Regional Government Accounting System based on PP.71 of 2010, and a book entitled Efforts, Work Incentives and Task Complexity and their relevance to audit judgment.

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