The Effect of Debt Maturity Structure on Investment Decisions in Food and Beverage Industry in Indonesia

Abstract

The purpose of this research is to see the effect of debt maturity structure on investment decisions. The independent variable in this study is the debt maturity structure. The dependent variable is investment decision while the control variable consists of lagged investment, fixed asset turnover, leverage, return on total assets, liquidity, cash flow and firm size. This research was conducted by collecting data from 54 companies in the food and beverage sub-sector in Indonesia over a period of 3 years (2019-2021) and using a panel data regression model in its testing. The results of the research conducted explained that the variables of debt maturity structure, leverage, liquidity, and cash flow have no effect on investment decisions, lagged investment variables, return on total assets, and company size have a significant positive effect on investment decisions while the fixed asset turnover variable has a significant negative effect on investment decisions. The implication of the research that has been done is to provide direction for financial managers to seek to increase the use of fixed assets, and increase the return on total company assets and optimal use of company fixed asset turnover, while investors should choose companies that have high company size, return on total assets that are high and the previous year's high fixed assets.