Big or Small, Profitable or Not: What Do Investors Really Respond To?

This study aims to understand what factors influence investor responses to companies. Using a mixed methods approach, it analyzes quantitative data from 50 companies listed on the Indonesia Stock Exchange and conducts qualitative interviews with investors and financial analysts. The results show tha...

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Main Author: Aulia Busono
Format: Article
Language:English
Published: Universitas Ahmad Dahlan 2025-03-01
Series:Jurnal Reksa
Subjects:
Online Access:http://journal2.uad.ac.id/index.php/reksa/article/view/13184
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author Aulia Busono
author_facet Aulia Busono
author_sort Aulia Busono
collection DOAJ
description This study aims to understand what factors influence investor responses to companies. Using a mixed methods approach, it analyzes quantitative data from 50 companies listed on the Indonesia Stock Exchange and conducts qualitative interviews with investors and financial analysts. The results show that profitability, measured by Return on Assets (ROA), is the strongest financial factor in attracting investor interest. Company size and institutional ownership also have effects, but their impact is smaller. The study also found that investor emotions, such as trust, hope, and fear, play a big role in investment decisions. Companies that show good financial performance, build trust, and share a strong vision for the future are more attractive to investors. This study contributes to the literature by combining financial metrics and investor psychology to better understand what drives investor behavior. It offers practical insights for companies on strengthening investor relations by focusing on financial performance and emotional factors such as trust and future vision.
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publishDate 2025-03-01
publisher Universitas Ahmad Dahlan
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series Jurnal Reksa
spelling doaj-art-bb52ac4500ef490f818beef6daf293a22025-08-20T03:37:01ZengUniversitas Ahmad DahlanJurnal Reksa2089-65812614-37202025-03-0112111913410.12928/jreksa.v12i1.1318412246Big or Small, Profitable or Not: What Do Investors Really Respond To?Aulia Busono0Sekolah Tinggi Ilmu Ekonomi Indonesia, Surabaya, IndonesiaThis study aims to understand what factors influence investor responses to companies. Using a mixed methods approach, it analyzes quantitative data from 50 companies listed on the Indonesia Stock Exchange and conducts qualitative interviews with investors and financial analysts. The results show that profitability, measured by Return on Assets (ROA), is the strongest financial factor in attracting investor interest. Company size and institutional ownership also have effects, but their impact is smaller. The study also found that investor emotions, such as trust, hope, and fear, play a big role in investment decisions. Companies that show good financial performance, build trust, and share a strong vision for the future are more attractive to investors. This study contributes to the literature by combining financial metrics and investor psychology to better understand what drives investor behavior. It offers practical insights for companies on strengthening investor relations by focusing on financial performance and emotional factors such as trust and future vision.http://journal2.uad.ac.id/index.php/reksa/article/view/13184profitabilitycompany sizeinstitutional ownershipinvestor emotions
spellingShingle Aulia Busono
Big or Small, Profitable or Not: What Do Investors Really Respond To?
Jurnal Reksa
profitability
company size
institutional ownership
investor emotions
title Big or Small, Profitable or Not: What Do Investors Really Respond To?
title_full Big or Small, Profitable or Not: What Do Investors Really Respond To?
title_fullStr Big or Small, Profitable or Not: What Do Investors Really Respond To?
title_full_unstemmed Big or Small, Profitable or Not: What Do Investors Really Respond To?
title_short Big or Small, Profitable or Not: What Do Investors Really Respond To?
title_sort big or small profitable or not what do investors really respond to
topic profitability
company size
institutional ownership
investor emotions
url http://journal2.uad.ac.id/index.php/reksa/article/view/13184
work_keys_str_mv AT auliabusono bigorsmallprofitableornotwhatdoinvestorsreallyrespondto