Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia
Estimation of systematic risk is one of the important aspects of the best investment decisions. Through systematic risk prediction will be known risks to be faced by investors, because systematic risk is a measure of investment risk. In addition to returns, investors always consider the risk of inve...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2017-03-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8217/imfi_2017_01_Puspitaningtyas.pdf |
| _version_ | 1818788193658470400 |
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| author | Zarah Puspitaningtyas |
| author_facet | Zarah Puspitaningtyas |
| author_sort | Zarah Puspitaningtyas |
| collection | DOAJ |
| description | Estimation of systematic risk is one of the important aspects of the best investment decisions. Through systematic risk prediction will be known risks to be faced by investors, because systematic risk is a measure of investment risk. In addition to returns, investors always consider the risk of investment, because investors are rational individuals, ie individuals who always consider the trade-off between return and risk. At a certain level of return, investors will tend to choose investments with the lowest risk level. Conversely, at a certain level of risk, investors tend to choose investments with the highest return rate. The purpose of this paper is to analyze the influence of the financial information on the systematic risk of stock manufacturing companies listed on the Indonesia Stock Exchange over a period of five years from January 2011 to December 2015. The financial information is measured in four accounting variables, i.e. financial leverage, liquidity, profitability, and firm size. The results of data analysis using multiple linear regression method to prove that at the 0.05 level only variable sized companies that significantly influence systematic risk. Meanwhile, the variable financial leverage, liquidity, and profitability does not affect the systematic risk. The results showed inconsistencies with the results of several previous studies. This inconsistency may be due to measurement problems variable accounting, the implementation period of the study, and the use of different research samples. |
| first_indexed | 2024-12-18T14:19:47Z |
| format | Article |
| id | doaj.art-ec915f022fce43d7995e8e6bc18e7f39 |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-12-18T14:19:47Z |
| publishDate | 2017-03-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-ec915f022fce43d7995e8e6bc18e7f392022-12-21T21:04:54ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582017-03-01141465410.21511/imfi.14(1).2017.058217Estimating systematic risk for the best investment decisions on manufacturing company in IndonesiaZarah Puspitaningtyas0Ph.D. degree in Management, Faculty of Social and Political Science, Jember UniversityEstimation of systematic risk is one of the important aspects of the best investment decisions. Through systematic risk prediction will be known risks to be faced by investors, because systematic risk is a measure of investment risk. In addition to returns, investors always consider the risk of investment, because investors are rational individuals, ie individuals who always consider the trade-off between return and risk. At a certain level of return, investors will tend to choose investments with the lowest risk level. Conversely, at a certain level of risk, investors tend to choose investments with the highest return rate. The purpose of this paper is to analyze the influence of the financial information on the systematic risk of stock manufacturing companies listed on the Indonesia Stock Exchange over a period of five years from January 2011 to December 2015. The financial information is measured in four accounting variables, i.e. financial leverage, liquidity, profitability, and firm size. The results of data analysis using multiple linear regression method to prove that at the 0.05 level only variable sized companies that significantly influence systematic risk. Meanwhile, the variable financial leverage, liquidity, and profitability does not affect the systematic risk. The results showed inconsistencies with the results of several previous studies. This inconsistency may be due to measurement problems variable accounting, the implementation period of the study, and the use of different research samples.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8217/imfi_2017_01_Puspitaningtyas.pdffinancial informationinvestment decisionsystematic risk |
| spellingShingle | Zarah Puspitaningtyas Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia Investment Management & Financial Innovations financial information investment decision systematic risk |
| title | Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia |
| title_full | Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia |
| title_fullStr | Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia |
| title_full_unstemmed | Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia |
| title_short | Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia |
| title_sort | estimating systematic risk for the best investment decisions on manufacturing company in indonesia |
| topic | financial information investment decision systematic risk |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8217/imfi_2017_01_Puspitaningtyas.pdf |
| work_keys_str_mv | AT zarahpuspitaningtyas estimatingsystematicriskforthebestinvestmentdecisionsonmanufacturingcompanyinindonesia |