Abstract
This study aimed to analyze the effect of liquidity and profitability on investment opportunities set in consumer goods sector companies listed on the Indonesia Stock Exchange. The research was conducted in consumer sector companies listed on the Indonesia Stock Exchange. The data analysis technique in this study uses qualitative data analysis based on the results of interviews, observations, and documentation. The findings in the study indicate that liquidity proxied by the Current Ratio has a negative and insignificant effect on the Investment Opportunity Set (IOS) in consumer sector companies listed on the Indonesia Stock Exchange for the period 2018-2023. Conversely, profitability proxied by Return on Equity (ROE) shows a positive and significant influence on the Investment Opportunity Set (IOS) in consumption sector companies in the same period. This finding confirms that profitability is the main factor driving the company's investment opportunities, while liquidity has no significant role in influencing IOS. The research results are expected to assist company commissioners in improving corporate financial governance to be more competitive, support financial performance, and ensure the stability and sustainability of corporate control.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call