PENGARUH LEVERAGE, PROFITABILITAS DAN LIKUIDITAS TERHADAP RESPON INVESTOR

Abstract

This research examines the effect of leverage, profitability, and liquidity on investors' responses. The research applies quantitative. Furthermore, purposive sampling was used as the data collection technique. The population consists of infrastructure companies listed on the Indonesia Stock Exchange from 2021 to 2023. In line with that, there were 52 companies in the sample. The hypothesis test used multiple linear regression. Moreover, the result concludes that (a) leverage does not affect investors’ response, (b) profitability has a positive effect on investors’ response, and (c) liquidity does not affect investors’ response. Due to those results, investors consider a company’s profitability rather than leverage and liquidity in making investment decisions. A higher profitability gives a positive signal to investors as it shows the company’s ability to gain profits and manage capital properly. However, both leverage and liquidity are not the main factors affecting investors’ responses. The investors do not consider the debt level since they tend to focus more on how the company manages capital and gains profits. Additionally, growth potency and sustainability of the company’s profitability need to be prioritized over the company's ability to fulfill the short-term obligation.