Return : Study of Management, Economic and Bussines
Vol. 3 No. 10 (2024): Return : Study of Management, Economic And Bussines

Analysis of the Effect of Financial Performance on Investment Policy in Telecommunication Companies Listed on the Indonesia Stock Exchange

Muh. Saharulla (Universitas Muhammadiyah Makassar)
Andi Rustam (Universitas Muhammadiyah Makassar)
A. Ifayani Haanurat (Universitas Muhammadiyah Makassar)



Article Info

Publish Date
17 Oct 2024

Abstract

This study aims to analyze the influence of financial performance on investment policies in telecommunication companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. In this study, four main financial ratios, namely Current Ratio (CR), Debt-to-Equity Ratio (DER), Return on Assets (ROA), and Working Capital Turnover (WCT) are used as independent variables to measure their impact on the company's investment policy. The data used is sourced from the company's annual financial statements available on the IDX. The analysis method used is multiple linear regression to see the relationship between financial variables and investment policy. The results show that the Current Ratio has no significant influence on investment policy and Return on Assets has a positive and significant influence on investment policy, while the Debt-to-Equity Ratio shows a significant positive influence. Working Capital Turnover does not have a significant influence on investment policy. This finding provides practical implications for company management in designing optimal investment policies based on the company's financial performance.

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Journal Info

Abbrev

return

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal RETURN is a double blind peer-reviewed academic journal and open access to social and scientific fields. The journal is published monthly by PT. Publikasiku Academic Solution. The Jurnal RETURN provides a means for sustained discussion of relevant issues that fall within the focus and ...