Research Article
Investment Risk: Empirical Evidence from Indonesia Stock Exchange
@INPROCEEDINGS{10.4108/eai.12-12-2020.2305117, author={Herma Wiharno and Teti Rahmawati and Lia Dwi Martika and Arief Nurhandika and Rosi Utari Dewi}, title={Investment Risk: Empirical Evidence from Indonesia Stock Exchange }, proceedings={Proceedings of the 1st Universitas Kuningan International Conference on Social Science, Environment and Technology, UNiSET 2020, 12 December 2020, Kuningan, West Java, Indonesia}, publisher={EAI}, proceedings_a={UNISET}, year={2021}, month={3}, keywords={asset growth; leverage; profitability; company size; investment risk}, doi={10.4108/eai.12-12-2020.2305117} }- Herma Wiharno
Teti Rahmawati
Lia Dwi Martika
Arief Nurhandika
Rosi Utari Dewi
Year: 2021
Investment Risk: Empirical Evidence from Indonesia Stock Exchange
UNISET
EAI
DOI: 10.4108/eai.12-12-2020.2305117
Abstract
This study aims at obtaining empirical evidence that can explain the influence of Asset Growth, Leverage-measured by Debt to Equity Ratio (DER), Profitability of Return on Asset (ROA), and Company Size, either simultaneously or partially on Investment Risk in the Coal Mining Sub-Sector Company Listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 Period. This study used quantitative data in financial reports registered in Indonesia Stock Exchange (IDX). The population in this study are coal mining sub-sector companies listed on the IDX. The type of data used in this study was secondary data obtained from www.idx.co.id. The analysis technique used in this research was panel data regression analysis using the Eviews program version 9.0, hypothesis testing used t-statistic and f-statistic. The classical assumption test shows that the available data met the requirements to use the panel data regression equation model. The results show that the Asset Growth, Leverage, Profitability, and Company Size have simultaneous and significant effect on Investment Risk. Furthermore, the partial analysis shows that Asset Growth has significant and negative effect on Investment Risk, Leverage has significant and positive effect on Investment Risk, Profitability has significant and negative effect on Investment Risk, and Company Size has significant and negative effect on Investment Risk.
