The Effect of Capital Structure and Liquidity on Investment Decisions with Profitability as Intervening Variable in Manufacturing Companies Listed on Bei

Abstract

This study aims to examine the effect of capital structure and liquidity on investment decisions with profitability as an intervening variable. The method used in this sampling is purposive sampling. The sample in this study were 63 manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The data analysis technique used in this research is the path analysis technique and the Sobel test. The results showed that capital structure had a negative and significant effect on profitability and liquidity had no effect on profitability, then capital structure, liquidity and profitability had a positive and significant effect on investment decisions.