The Effect of Leverage, Liquidity, Profitability, Coverage, Growth, and Firm Size With Auditor’s Reputation As A Moderating To Bond Rating of Banking Firm
Abstract: This research
aims to determine the effect of leverage, liquidity, profitability, coverage,
and firm size with auditor’s reputation as a moderating to bond rating of
banking firm which listed in Indonesia Stock Exchange (BEI) and rated by PT
Pefindo period 2004 to 2013. In this research the sample were 176 bond which
issued by banking firms. The sampling technique is using purposive sampling
method, whereas the method of analysis used logistic regression analysis. This research
shows that profitability, growth, and firm size have an effect on bond rating.
In the other hand, leverage, liquidity, and coverage have no effect on bond
rating. Meanwhile auditor’s reputation as a moderation variable did not affect
to strengthening or weakening the effect between profitability and bond rating.
Key words: bond rating,
profitability, auditor’s reputation and banking
Penulis: VEGA M. ROSA,
MUSDHOLIFAH
