PENGARUH PROFITABILITAS, KEPUTUSAN INVESTASI DAN KEPUTUSAN PENDANAAN TERHADAP KUALITAS LABA PERUSAHAAN FOOD AND BAVERAGES YANG TERDAFTAR DI BEI TAHUN 2015-2019

Abstract

This research aimed to examine and analyze the effect of profitability, investment decision and funding decision on profit quality. While, the population was all Food and Beverages companies which were listed on Indonesia Stock Exchange during 2015-2019. They were 26 companies. The research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 10 companies as sample. Furthermore, the data were in form of documents. Additionally, the data analysis technique used multiple linear regression. The research result concluded profitability which referred to Return On Asset (ROA) had negative effect on profit quality of Food and Beverages companies. This shows that the profit generated triggers conflict due to earnings management so that it only benefits management and does not benefit shareholders. Likewise, investment decision which referred to Investment Opportunity Set (IOS) with Price Earning Ratio (PER) had negative effect on profit quality of Food and Beverages companies. This shows that the company is attracting funds from investors but the information obtained by investors is less. Similarly, funding decision which referred to Debt to Equity Ratio (DER) had negative effect on profit quality of Food and Beverages companies. This shows that the increasing use of external funds with a long period of time will have a big risk in the future.
Keywords: profitability, investment decision, funding decision, profit quality