Analysis of Factors Affecting Investment Decision with Growth Opportunities as a Moderation Variable in Basic Industry and Chemicals Sector Companies Listed on Indonesia Stock Exchange in 2016 – 2020

Abstract

This study focuses on examining how the effect of profitability, debt policy, investment opportunity set and firm size with growth opportunity as a moderating variable on investment decisions. This study has a population of basic and chemical industrial sector companies listed on the Indonesia Stock Exchange for the period 2016 – 2020. The research data used is secondary data with an observation period of 5 years. Determination of this sample using purposive sampling with several criteria. Thus, obtained 37 samples of companies used in this study. This study also uses Moderation Regression Analysis (MRA) as the method of analysis. The results of this study are profitability and firm size have a significant and positive effect on investment decisions, while debt policy and investment opportunity sets have a significant negative effect on investment decisions. Growth opportunity can moderate the relationship between debt policy and investment decisions, but on the other hand growth opportunity is not able to moderate the relationship between profitability, investment opportunity set and company size on investment decisions.