THE INFLUENCE OF INVESTMENT DECISIONS AND BUSINESS RISK ON PROFIT GROWTH IN FINANCIAL SECTOR COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE FOR THE 2020–2022 PERIOD

Abstract

The profit growth was fluctuated on the 2020 - 2022 because of covid 19 and the moving on manual to digital systems which is done by company.

The purpose of this study to aims to find out influence investment decisions and business risk on profit growth in financial sector companies which is the companies was listing on idx for the 2020 until 2022.

This research used a quantitative method with secondary data which is the data obtained from annual report statement. the sample using a purposive sampling, where the samples are 50 companies.

The results showed that partially the first hypothesis (H₁) had acalculated value t_count > t_table of 7.470 > 1.976 with a significance value of 0.0 00 < 0.05, then H₀ rejected H₁ accepted. The second hypothesis (H₂) partially has t count > t table 6.360 > 1.976 with significance levels 0.0 00 < 0.05, then H₀ rejected H₂ is accepted, the third hypothesis (H₃) simultaneously has a value of F_count > F_table (32.896 ≥ 3.057) with a significant value of 0.0 00 < 0.05, so H₀ rejected H₃ accepted.

The conclusion of investment decisions and business risks has a significant effect simultaneously on profit growth, investment decisions affect profit growth and business risk affects profit growth.