ANALISIS PENGARUH UKURAN PERUSAHAAN DAN PROFITABILITAS TERHADAP INVESTMENT OPPORTUNITY SET PADA PERUSAHAAN MANUFAKTUR YANG TERCATAT DI BURSA EFEK INDONESIA

Abstract

Abstract
This study aims to measure empirically the influence of profitability and firm size to investment opportunity set of companies, on manufacturing companies listed on the Indonesia Stock Exchange. This research is a replication of the previous research of Hartati (2006). This study examines the effect of profits and corporate wealth on IOS. The independent variable in this study is profitability measured by ROA and corporate wealth (Size) as measured by total assets. The results of this study indicate that there is a positive influence between Profitability to Set investment opportunities (IOS). These results can be interpreted that the higher the profitability the greater the investment opportunity of Manufacturing companies in Indonesia Stock Exchange. While in terms of size, there is no influence between the size of the company against investment opportunity Set (IOS). These results can be interpreted that the high low investment opportunities of companies is not determined by the size of the company. The low coefficient of determination in this study, which is 34.1% indicates that the model of this study has not been able to explain optimally about the factors that affect the Investment Opportunity Set at manufacturing companies in Indonesia Stock Exchange, so the need for additional variables
Keywords: IOS, Profitability, Size, Manufacturing