Issue |
E3S Web Conf.
Volume 426, 2023
The 5th International Conference of Biospheric Harmony Advanced Research (ICOBAR 2023)
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Article Number | 02036 | |
Number of page(s) | 5 | |
Section | Innovative Management and Sustainable Society | |
DOI | https://doi.org/10.1051/e3sconf/202342602036 | |
Published online | 15 September 2023 |
Analysis of the Effect of Profitability, Liquidity and Capital Structure on Investment Risk in Primary Consumer Goods Industry (Non-Cyclicals) Companies Listed on The IDX in 2018-2020
Accounting Department, BINUS Online Learning, Bina Nusantara University, Jakarta, Indonesia 11480
* Corresponding author: stella.tio@binus.ac.id
In 2022, Indonesia was rife with cases of investment fraud. SWI (Investment Alert Task Force) revealed that three main factors made many people entangled in illegal investments: the nature of wanting to get rich suddenly, recklessness, and lack of public financial literacy. Hence, awareness of the potential for fraud was still minimal. The purpose of this study was to analyze the effect of profitability, liquidity, and capital structure on investment risk. This research was conducted by analyzing report data from non- cyclical consumer goods industry companies listed on the IDX for 2018-2020 and observational data obtained from 105 companies. The sampling method used in this research is a non-probability sampling method with a purposive sampling technique. This research is quantitative research with multiple linear regression analysis methods. The results of this study indicate that profitability and capital structure have an effect on investment risk, while liquidity has no effect on investment risk.
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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