Erkaningrum, Florentina Indri (2017) INTERELASI ANTARA KEPUTUSAN INVESTASI, KEBIJAKAN UTANG, RISIKO BISNIS DAN PROFITABILITAS. In: International Conference and Doctoral Colloquium in Finance 2017, 2-3 Agustus 2017, Jakarta. (Unpublished)

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Abstract

The policy of finance will effect the future company’s development. Taking decision for investment precisely and the funding policy can make the business risk controlled and get the expected rate of return. This research aims at verifying empirically factors influencing investment, debt, business risk, profitability, and finding out the interrelation among them. The population of the research are manufacturing companies issuing complete financial reports and they are published in Indonesia Capital Market Directory starting from 2000 until 2014. The analysis result on the investment equation shows that profitability, sales growth, and size have positive impact on investment; debt and business risk have negative impact on invesment; dividend and q ratio do not have any impact on investment. The analysis result on the debt equation shows that business risk and size have positive impact on debt; investment and profitability have negative impact on debt; dividend, variability of earnings and structure of assets do not have any impact on debt. The analysis result on business risk equation shows that debt and variability of earnings have positive impact on business risk; size has negative impact on business risk; investment, profitability, dividend, and liquidity do not have any impact on business risk. The analysis result on the profitability equation shows that investment and size have positive impact on profitability; debt and structure of assets have negative impact on profitability; business risk, dividend, and sales growth do not have any impact on profitability. The analysis result of interrelation among investment, debt, business risk, and profitability shows that 1) there is interrelation between investment and debt; 2) there is interrelation between investment and profitability; 3) there is interrelation between debt and business risk; 4) there is interrelation between debt and profitability; 5) business risk influences investment; and 6) there is no relation between business risk and profitability.

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