International Journal of Advance Study and Research Work (2581-5997)/ Volume 2/Issue 4/April 2019 1 © 2019, IJASRW, All right reserved http://www.ijasrw.com Factors that Influence Investors in Investing Stock with Investment Interest as Mediating Variable in Indonesian Capital Market Dimas Raka Prayudha 1 , Adi Kuswanto 2 Gunadarma University, Indonesia 1 2 dimasrakaprayudha@yahoo.com 1 , kuswanto@staff.gunadarma.ac.id 2 DOI: 10.5281/zenodo.2649091 Abstract This study aims to examine empirically the effect of investment return, annual report information, and investment risk, either partially or simultaneously to investment decision with investment interest as a mediating variable in the Indonesian capital market. Data sourced from questionnaires that are distributed and filled by people who have become stock investors in the capital market. The total sample is 454 respondents. The process of data analysis is a reliability and validity test, descriptive statistics analysis, model testing, and hypothesis testing analysis. The test is performed by using Structural Equation Models. The tool used is AMOS version 24 and SPSS version 25. The results showed that investment return, annual report information, and investment risk simultaneously affect investment decision with investment interest as a mediating variable. But partially, only investment risk that has no effect on investment interest. Meanwhile, the investment return and annual report information have an effect on investment interest and investment interest has an effect on investment decision. Keyword: Investment Return, Annual Report Information, Investment Risk, Investment Interest, Investment Decision. Introduction In 2018, the world economy was not stable because of the trade war between America and China, America and Turkey, the battle between America and North Korea, and the impact on the crisis in Turkey, Venezuela, and Argentina. The condition has an impact on the depreciation of the world's currency against the US Dollar. The depreciated currency certainly has an influence on the capital market index in the world. The Rupiah exchange rate had a negative effect on the Composite Stock Price Index [16] . The Composite Stock Price Index is a series of historical information regarding price movements of joint stock, up to a certain date and reflects a value that serves as a measure of the performance of a joint stock on the stock exchange [38] . The information shown by the Composite Stock Price Index at any time is a description of the general market situation or to indicate whether the stock price has increased or decreased in that country. The increase or decrease in the Composite Stock Price Index can also be reflected in the movement of economic and political phenomena that occur [11] . Data obtained from Yahoo Finance on October 8, 2018, on a Year to Date average capital market index worldwide decreased. The Hang Seng Index (Hong Kong) decreased by -14.13%. The Shanghai (China) index decreased by -18.87%. The Straits Times Index (Singapore) decreased by -7.11%. The FTSE (London) index decreased by -4.55%. The Xetra Dax Index (Frankfurt) decreased by -6.48%. If we have seen the economic conditions and capital market indices throughout the world, what about Indonesia's macroeconomic conditions? Measurement of macro analysis in a country's economy is Gross Domestic Product (GDP) [21] . Indonesia's GDP in the second quarter of 2018 was 5.27%, an increase from the second quarter of 2017 of 5.01% (Indonesian Central Statistics Agency). Indonesia's inflation rate in September 2018 tends to be low and stable, which is 2.88% (Indonesian Central Statistics Agency, 2018). Indonesian interest rate, BI 7-day repo rate, has increased 5 times from January 2018 to September 2018 to 5.75%. This is done so that the Rupiah does not depreciate further against the US Dollar. In addition, the level of foreign investment in Indonesia declined in the second quarter of 2018 by Rp.95.7 trillion from the previous Rp109.9 trillion (Investment Coordinating Board, 2018), but in the last 5 years still shows an increasing trend. The Rupiah exchange rate against the dollar depreciates by 12.03% in Year to Date. In the scope of the capital market, the Indonesian Composite Stock Price Index on 8 October 2018 decreased by -8.28% in Year to Date, but still recorded an increase of 17.72% in the last 3 years. With the increase in the index over the past 3 years, certainly, it must be followed by the growth of investors in the Indonesian capital market.