The Moderation Effect of Investment Decisions: A Case Study on Basic Materials Sector Companies in Indonesia
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 07
Abstract
This study aims to show empirical evidence of the influence of profitability on company value, the influence of investment decisions on company value, and the role of investment decision moderation on the influence of profitability on company value in companies in the basic materials sector listed on the Indonesia Stock Exchange for the 2018-2019 period. The sample of this study is 10 basic materials companies that meet the sample criteria. The results of the study stated that profitability had a positive and significant effect on the company's value. High profitability indicates that the company is able to generate significant profits and good performance so that it can increase its value in the capital market. Furthermore, investment decisions also have a positive and significant effect on the company's value. The decision to invest is important because it will have an influence on the company's success in achieving a goal. Investment decisions can also moderate the relationship between profitability and company value. Wise and timely investment decisions can increase the positive impact of profitability on a company's value.
Authors and Affiliations
Janno Sangkaranca Listyadi, Akhmadi
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