EFFECT OF INVESTMENT OPPORTUNITY SET (IOS), LEVEL OF LEVERAGE AND RETURN TO RETURN STOCK MARKET COMPANY IN INDONESIA STOCK EXCHANGE

Assagaf, Aminullah (2016) EFFECT OF INVESTMENT OPPORTUNITY SET (IOS), LEVEL OF LEVERAGE AND RETURN TO RETURN STOCK MARKET COMPANY IN INDONESIA STOCK EXCHANGE. EFFECT OF INVESTMENT OPPORTUNITY SET (IOS), LEVEL OF LEVERAGE AND RETURN TO RETURN STOCK MARKET COMPANY IN INDONESIA STOCK EXCHANGE, 14 (3). pp. 1625-1644.

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Abstract

This study aimed to analyze the influence of investment opportunity set, the level of leverage and the return of stock market returns. Selection factors or independent variables were based on agency theory and signaling theory which suggests that the shareholders aim to maximize the value of the company is characterized by an increased share price stretcher companies in the capital market. To support this analysis, so in this study used secondary data in a timeframe of ten years by selecting a sample of 20 companies classified as the most active companies traded shares in brackets the last six months or August 2015 until January 2016. The analytical method used is the statistical approach through a linear regression model. The results of this study found that investent opportunity set that is produced as growth in assets, capital expenditure, and the ratio of investment to earnings, the effect turns negative and significantly the effect on stock returns. This study uses a model be some analysis, and the results are consistent, so it can be stated that the policy of adding asset management and capital expenditure does not affect the decision invetor in stock transactions in the capital market. Variable levels of leverage and market return variable and seginifikan positive effect on stock returns, so that changes in these variables will trigger the growth of stock prices or increase stock returns. Keyword: Agency Theory, Signalling Theory and the Capital Asset Pricing Model. INTRODUCTION Stock returns based perusahaan.menjadi share price development center

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