DETERMINANTS OF INVESTMENT DECISIONS IN CHEMICAL AND PHARMACEUTICAL SECTORS COMPANIES

Abstract

This research aims to analyze the determinants of investment decisions, including leverage, cash flow, managerial ownership, and dividend policy. The object of this research is companies in the chemical and pharmaceutical sectors listed on the Indonesia Stock Exchange during the 2019–2023 period. Leverage is measured using the debt-to-assets ratio, cash flow is calculated using the working capital turnover ratio, managerial ownership is measured by the ratio of shares owned by management to the total outstanding shares, and dividend policy is measured using the dividend payout ratio. This research employs a purposive sampling method with 55 observation samples. The analysis is conducted using panel data regression with E-Views 13 software. The results show that leverage and cash flow have a significant positive effect on investment decisions. Meanwhile, managerial ownership and dividend policy has no significant impact on investment decisions