Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)

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The Effect of Leverage and Liquidity on Profitability: Study of The KBW NASDAQ Financial Technology Company for the 2017–2022 Period

Authors
Yusuf Murtadlo Hidayat1, *, I. Z. F. S. Ratu Dintha1, Heraeni Tanuatmodjo1, Nursyaharani Nabila1
1Universitas Pendidikan Indonesia, Bandung, Indonesia
*Corresponding author. Email: yusuf.murtadlo@upi.edu
Corresponding Author
Yusuf Murtadlo Hidayat
Available Online 12 September 2025.
DOI
10.2991/978-94-6463-817-2_68How to use a DOI?
Keywords
Financial Technology; Leverage; Liquidity; Profitability
Abstract

This study aims to examine the impact of leverage and liquidity on profitability and to determine the specific effects of leverage and liquidity on profitability in KBW NASDAQ Financial Technology companies from 2017 to 2022. The research adopts a descriptive and verification approach, utilizing a quantitative method with a total sample of 15 companies within the KBW NASDAQ Financial Technology index. The data analysis technique employed is multiple regression analysis using EViews 12 software. The findings indicate that leverage has no significant effect on profitability, whereas liquidity has a positive impact on profitability. Based on these results, it is recommended that companies optimize asset utilization to enhance profitability by increasing sales, improving cost efficiency, and expanding market share. Effective leverage management is also crucial to prevent excessive financial burdens, ensuring the optimal use of funds to maintain financial stability and sustain long-term growth.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
12 September 2025
ISBN
978-94-6463-817-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-817-2_68How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yusuf Murtadlo Hidayat
AU  - I. Z. F. S. Ratu Dintha
AU  - Heraeni Tanuatmodjo
AU  - Nursyaharani Nabila
PY  - 2025
DA  - 2025/09/12
TI  - The Effect of Leverage and Liquidity on Profitability: Study of The KBW NASDAQ Financial Technology Company for the 2017–2022 Period
BT  - Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)
PB  - Atlantis Press
SP  - 581
EP  - 586
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-817-2_68
DO  - 10.2991/978-94-6463-817-2_68
ID  - Hidayat2025
ER  -