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Journals / Journal of Life Economics / 2021 / Cilt: 8 - Sayı: 2

THE EFFECT OF PROFITABILITY, CAPITAL STRUCTURE, AND FORWARD-LOOKING INFORMATION ON INVESTMENT RISK

Muhammad Istiqlal Jerıco JERICO
Wiwik UTAMI
Pages
147–156
Publication Date
2021-05-17
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The results of the study concluded that profitability and capital structure had no effect on investment risk.

📌 3 Key Takeaways

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Objective & Hypothesis:This study aims to provide empirical evidence of the effect of profitability, capital structure and forward looking information on investment risk.
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Key Findings & Data:The population used in this research were all banking companies listed in the Indonesia Stock Exchange for the period 2016 to 2018.
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Conclusion & Impact:The results of the study concluded that profitability and capital structure had no effect on investment risk.
🔬Design:Research Article
📍Scope:2016 · 117 samples
⚙️Variables:Investment Risk · Profitability · Capital Structure

Abstract

This study aims to provide empirical evidence of the effect of profitability, capital structure and forward looking information on investment risk. The population used in this research were all banking companies listed in the Indonesia Stock Exchange for the period 2016 to 2018. The sample selection used a random sampling method, and obtained 117 samples. The variables of profitability, capital structure, and forward-looking information refer to the elements of Integrated Reporting (2013) as an independent variable, and investment risk as the dependent variable. Data is collected from bank annual reports and share prices obtained from the website. The analysis method used is multiple linear regression. The results of the study concluded that profitability and capital structure had no effect on investment risk. Forward-looking disclosure has a negative effect on investment risk. This means that forward-looking disclosures can significantly reduce investment risk

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Cite This Article

JERICO, M. I. J., UTAMI, W. (2021). THE EFFECT OF PROFITABILITY, CAPITAL STRUCTURE, AND FORWARD-LOOKING INFORMATION ON INVESTMENT RISK. Journal of Life Economics, Cilt: 8 - Sayı: 2, 147–156. https://ajindex.com/articles/220502

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