PENGARUH PROFITABILITAS TERHADAP RESPON INVESTOR DENGAN KOMITE AUDIT SEBAGAI VARIABEL MODERATING

Abstract

This research aimed to examine the effect of profitability on investors’ response, with the audit committee as moderating variable, through data of manufacturing companies that were listed on the Indonesia Stock Exchange (IDX) from 2016-to 2020.The research was quantitative. The population was all manufacturing companies that were listed on Indonesia Stock Exchange (IDX) from 2016-to 2020. Moreover, the data collection technique used purposive sampling with 27 companies as the sample. Furthermore, the data were secondary in the form of annual reports which were taken from IDX 2016-2020. Additionally, the data analysis technique used multiple linear regression.The research result concluded that profitability had a positive effect on investors’ responses. This meant, that the better the companies had bigger profitability, the higher the companies’ investors’ response would be. On the other hand, the audit committee moderated negatively on the profitability of investors’ responses. It meant the audit committee weakened the effect of profitability on investors’ responses.