PENGARUH KINERJA KEUANGAN TERHADAP RISIKO INVESTASI SAHAM PADA PERUSAHAAN MANUFAKTUR

Abstract

This research aimed to examine the effect of manufacturing company’s financial performance on the risk of
shares investment. While, the was manufacturing companies which were listed on Indonesia Stock Exchange
2013-2017. Moreover, the research was quantitative. The data collection technique used purposive sampling. In
line with, there were 75 manufacturing companies as sample. Furthermore, for the statistical analysis, it used
descriptive statistics and multiple linear regression analysis which were used to to examine the direct effect of
financial performance on the risk of shares investment. In addition, from the result of proper model test, it
concluded the model was good (feasible) and could be used for further analysis. The research result concluded
liquidity and leverage ratio which were referred to current ratio and debt to equity ratio had negative and
significant effect on the risk of shares investment. On the other hand, the activity and profitability ratio which
were referred to total asset turnover and return on equity had positive and significant effect on the risk of shares
investment.
Keywords : current ratio, risk of shares investment