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The effect of investment risks on stock return in the agricultural sector

Author

Listed:
  • Ali Sadikin

    (Departement of Management, Faculty of Economics and Business, University of Lambung Mangkurat, Banjarmasin, Indonesia)

  • Fahmi Roy Dalimunthe

    (Departement of Management, Faculty of Economics and Business, University of Lambung Mangkurat, Banjarmasin, Indonesia)

Abstract

This study purposes to determine the impact of risks of investment on stock returns of the agricultural sector in wetlands listed on the IDX for the period 2016-2019. This study uses secondary data while the analysis tool uses multiple linear regression (SPSS 21). The research population is 21 companies and the sample is 17 companies. The research sampling technique uses purposive sampling. The object of research is the agricultural sector which is listed on the Indonesia Stock Exchange for the period 2016 to 2019. This study also uses some classical assumptions. Testing the research hypothesis was done by t-test (partial test) and the coefficient of determination test. The results of the study are that 2 independent variables have a significant effect, namely interest rate risk (X1) in a positive direction and exchange risk in a negative direction, while liquidity risk and inflation risk have no significant effect with negative and positive directions on stock returns of the agricultural sector listed on the IDX for the period 2016-2019. The result of the research determination coefficient is 15.1%. Key Words:Interest Rate Risk, Exchange Risk, Liquidity Risk, Inflation Risk, Stock Returns

Suggested Citation

  • Ali Sadikin & Fahmi Roy Dalimunthe, 2021. "The effect of investment risks on stock return in the agricultural sector," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 189-197, September.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:6:p:189-197
    DOI: 10.20525/ijrbs.v10i6.1328
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