Dua Pilar Keuangan : Pengaruh Debt to Equity Ratio (DER) dan Arus Kas Operasi terhadap Profitabilitas pada Sektor Asuransi

Abstract

The main objective of this study is to analyze the impact of Debt to Equity Ratio (DER) and Operating Cash Flow on Profitability (ROE) in insurance companies listed on the Indonesia Stock Exchange (BEI). The research underscores the importance of managing capital structure and cash flow to address unique challenges in the insurance sector. It employs a quantitative approach with multiple linear regression analysis on 39 secondary data points from financial statements of insurance companies for the period 2022–2024. The results show that DER has a positive effect on ROE, while Operating Cash Flow is not significant individually. However, together, both variables contribute 22.1% to Profitability. These findings support Signaling Theory, which posits that financial decisions can serve as signals to investors. Practically, companies are advised to optimize DER and enhance cash flow management, while regulators can use these results to formulate policies for the stability of the insurance sector. The study has limitations, including its short time frame (2022–2024), which is insufficient for analyzing long-term trends or the impact of economic cycles such as crises or high growth. Regulatory changes by the Financial Services Authority (OJK) outside this period were not observed. Additionally, the limited sample size (39 financial statement data points from BEI-listed insurance companies) may not fully represent the dynamics of the insurance sector in Indonesia, particularly for small or unlisted companies. This study is expected to contribute theoretically to financial management and provide opportunities for further research using a qualitative approach.

Keywords

Debt to Equity Ratio; Operating Cash Flow; Profitability; Insurance Sector