Proceedings of the 3rd International Conference on Advance & Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia

Research Article

Study of Investment at the Capital Market in the Firm Sector Performs Well

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  • @INPROCEEDINGS{10.4108/eai.20-6-2020.2300699,
        author={Dedi  Kusmayadi and Irman  Firmansyah and Tedi  Rustendi},
        title={Study of Investment at the Capital Market in the Firm Sector Performs Well},
        proceedings={Proceedings of the 3rd International Conference on Advance \& Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2020},
        month={9},
        keywords={study market},
        doi={10.4108/eai.20-6-2020.2300699}
    }
    
  • Dedi Kusmayadi
    Irman Firmansyah
    Tedi Rustendi
    Year: 2020
    Study of Investment at the Capital Market in the Firm Sector Performs Well
    ICASI
    EAI
    DOI: 10.4108/eai.20-6-2020.2300699
Dedi Kusmayadi1,*, Irman Firmansyah1, Tedi Rustendi1
  • 1: Lecturers at Accounting Department, Faculty of Economics and Business, Siliwangi University
*Contact email: dedikusmayadi@unsil.ac.id

Abstract

This research is a lesson to invest in the capital market in obtaining stock returns in companies listed in LQ45, which are companies that have good liquidity performance. The study was conducted in the period 2013 to 2018 using path analysis. The results found that of the three proposed predictor variables namely size, DER, and ROA, only DER was able to determine stock returns. The effect is positive so the greater the DER ratio, the better the stock returns obtained. Therefore, the amount of debt is not a problem if used as well as possible, because management at this type of company has successfully used funds from external to improve its performance which will ultimately increase returns. Besides, size is found as a variable that can predict ROA, not as a stock return predictor. But the effect is negative so the larger the size of the company the smaller the ROA ratio. This is a unique finding in companies that have high liquidity compared to other types of companies