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

Year 2021, Volume: 8 Issue: 2, 147 - 156, 17.05.2021

Muhammad Istiqlal Jerıco Jerıco Wiwik Utamı

https://doi.org/10.15637/jlecon.8.2.01

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

Keywords

Investment Risk, Profitability, Capital Structure, Forward-Looking Disclosure., Investment Risk, Profitability, Capital Structure, Forward-Looking Disclosure.

References

• ABDURAHIM, A. YAYA, R. & MARTAWIREJA A. E. (2016). Akuntansi Perbankan Syariah. Jakarta: Salemba Empat.• ALI, I. (2002). Pelaporan Keuangan dan Asimetri Informasi dalam Hubungan Agensi. Lintasan Ekonomi. 19 (2), July 2002.
• • ANUGRAH. (2019). CBC Ingatkan LDR Bank Sudah Tinggi, Perbankan Diminta Lakukan Ini [online], Harianterbit.com. https://www.harianterbit.com/ekonomi/read/112901/CBC-Ingatkan-LDR-Bank-Sudah-Tinggi-Perbankan-Diminta-Lakukan-Ini, [Date Accessed: 11/11/2019]
• • BREALEY, M. & MARCUS. (2007). Dasar-dasar Manajemen Keuangan Perusahaan. Jakarta: Erlangga. • BRIGHAM, E. F. & HOUSTON, J. F. (2011). Dasar-dasar Manajemen Keuangan Terjemahan. Jakarta: Salemba Empat, Tenth edition.
• • CHOI, F. D. S. & MEEK, G. K. (2012). International Accounting. Jakarta: Salemba Empat. 156
• • RIYANTO, B. (2010). Dasar-Dasar Pembelanjaan Perusahaan. Yogyakarta: BPFE, Fourth Edition.
• • Samsul, M. (2006). Pasar Modal dan Manajemen Portofolio. Jakarta: Erlangga.
• • SUDANA, I. M. (2013). Diversifikasi Investasi Saham: Perbandingan Risiko Total Portofolio Melalui Diversifikasi Domestik Dan Internasional. Jurnal Manajemen Teori dan Terapan|Journal of Theory and Applied Management. 6(1).
• • TANDELILIN, E. (2010). Portofolio dan Investasi. Yogyakarta: Konisius.
• • TASWAN. (2010). Manajemen Perbankan Konsep, Teknik, dan Aplikasi. Yogyakarta : UPP STIM YKPN.
• • UTAMI, W. (2015). Financial performance and the quality of sustainability disclosure based on global reporting initiative: Value relevances study in Indonesia stock exchange, Mediterranean Journal of Social Sciences. 6(5 S5):243.
• • UTAMI, W. & WAHYUNI, P. D. (2018). Forward-Looking Information Based on Integrated Reporting Perspective: Value Relevance Study in Indonesia Stock Exchanges. Asian Journal of Economics, Business and Accounting. 8(4): 1-12.
• • VERRECCHIA, R. E. (1983). Discretionary disclosure. Journal of aAccounting and Economics. 5(1): 179-194.
• • WEYGANDT, KIMMEL, & KIESO. (2014). Financial Accounting: IFRS Edition. Hoboken: John Wiley & Sons, Inc.
• • HIDAYAH, N. (2014). The effect of company characteristics toward firm value in the property and real estate company in Indonesia stock exchange. International Journal of Business, Economics, and Law. 5(1), 1-8.• HORNE, J. C. V. & HOWICZ, J. M. W. J. R. (2012). Prinsip-Prinsip Manajemen. Jakarta. Thirteenth Edition.
• • JENSEN, M. C. (1986). Agency Cost of Free cash Flow, Corporate Finance, and Takeovers. American Economic Review. 76(2), 323-329.
• • JOGIYANTO, H. M. (2014). Teori Portofolio Dan Analisis Investasi. Yogyakarta: BPFE, Eighth Edition.
• • KEOWN. A. J, et al. (2011). Manajemen Keuangan: Prinsip dan Penerapan Jakarta: PT. Indeks.
• • LANG, M. H. & LUNDHOLM, R. J. (1993). Cross-sectional determinants of analyst ratings of corporate disclosures Journal of Accounting Research. 246-271.
• • LANG, M. H. & LUNDHOLM, R. J. (1996). Corporate disclosure policy and analyst behavior, Accounting Review. 467-492.
• • LUNDHOLM, R. J. & MYERS, L. A. (2002). Bringing the future forward: The effect of disclosure on the returns-earnings relation. Journal of Accounting Research. 40(3), 809-839.
• • MILGROM, P, R. (1981). Good news and bad news: Representation theorems and applications. The Bell Journal of Economics. 380-391.
• • NURAINI, N. & MUTTAQIN, A. (2018). Korelasi Antara Penerapan Akad Mudharabah dan Profitabilitas Pada Bank Syariah Mandiri. Falah: Jurnal Ekonomi Syariah. 3(1), 25-37.
• • PRASETYONINGRUM, A. K. (2015). Analysis BI Rate and Return of Third Party Fund On Rate of Third Party Fund on Islamic Banking in Indonesia. In Conference In Business, Accounting, And Management (CBAM). 2(1), 104-116.
• • PRASETYONINGRUM, A. K.(2015). Risiko Bank Syariah. Yogyakarta: Pustaka Pelajar. 46-49.
• • RICHARD, M. (2019). Fintech Bakal Menggerus Pendapatan Bank Hingga US$5 Miliar. Finansialbisnis.com. World Wide Web: https://finansial.bisnis.com/read/20191107/90/1168007/fintech-bakal-menggerus-pendapatan-bank-hingga-us5-miliar. [Data Accessed, 07/11/2019.]