The comparison of sustainable growth rate, firm's performance and value among the firms in Sri Kehati index and IDX30 index in Indonesia Stock Exchange

The objectives of the research are to examine to what extent the effect of sustainable growth rate of the firms on current ratio as one of liquidity ratio, price to earning ratio, and profitability ratio focus on the firm's earnings (return on asset) of firms in Indonesia stock exchange, then, to compare the mean value of sustainable growth rate, return on asset, price earning ratio, and current ratio of firms listed in Kehati Sri Index and IDX30 Index. Our research used two population indicesthat consists of Kehati Sustainable and Responsible Investment Index (SRI-Kehati) and IDX30 Index. Sri Kehati Index represented the sustainable firm, and IDX30 as a benchmark index. Data have been collected from the Indonesia Stock Exchange within period 2010–2013. We use regression test and t-test to analyze the data. After analyzing data by using regression analysis we concluded that for firms listed in Sri Kehati Index, sustainable growthrate has positive and significant effect on return on asset and currentratio, sustainable growthratehas negative and significant effect on priceearning Ratio. For firms listed in IDX30 Index, sustainable growthratehas positive and significant effect on return on asset, sustainable growthrate has negative insignificant effect on priceearningratio, and the sustainable growthrate has positive insignificant effect on curentratio. Based on t-test results we concluded that observed on firm's sustainable growth, there is significant mean different for firms listed in Sri Kehati index and IDX30 Index. The results also the same with current ratio, there is significant different on current ratio of both indexes. In term of profitability, the results on return on assets shown that Sri Kehati Index have significant difference with IDX30 Index, whereas t-test result onpriceearningratio shown that mean value of price to earnings ratio of both indices are not significantly different.