INVESTMENT OPPORTUNITY SET AND CAPITAL STRUCTURE ON STOCK RETURN: AN EVIDENCE OF BANK COMPANIES IN LQ45

Abstract

This purpose of this study aimed to look at the effect of Investment Opportunity Set and Capital Structure on Stock Return at bank companies that are listed in LQ45. The sampling method that is used is purposive sampling. The sample that are collected is from 5 bank companies listed in LQ45 in year 2015-2018. Analysis data using linier regression analysis. Investment Opportunity Set using the CAPBVA proxy and Capital Structure using the Debt to Equity Ratio. The result shows that Investment Opportunity Set does not have a significant effect on Stock Return. And the result shows that Capital Structure have a negative effect on Stock Return.