Effect Of Operating Leverage, Growth Asset, And The
Size Of The Company To Systematic Risk
Siti Nur Azizah
1
, Akhris Fuadatis Sholikha
2
, Bagus Panuntun
3
, Nurhadi Kamaluddin
4
,
Ivon Silviana
5
{sitinurazizah@ump.ac.id
1
, akhrisfuadatis@iainpurwokerto.ac.id
2
, bagus.panuntun@uii.ac.id
3
,
nurhadikamaluddin84@gmail.com
4,
Ivonsilviana11@gmail.com
5
}
1,5
Faculty of Economic and Business Universitas Muhammadiyah Purwokerto
2
Faculty of Islamic Economic and Business IAIN Purwokerto
3
Faculty of Business and Economics, Universitas Islam Indonesia
4
Accounting Department Politeknik Muhammadiyah Tegal
Abstract: This study aims to empirically prove the effect of operating leverage, growth
asset, and the size of the company to systematic risk as to the dependent variable. The
sample in this study was agricultural sector companies listed on the Indonesia Stock
Exchange in 2015-2018 by using a purposive sampling method. The data analysis
technique used is multiple linear regression analysis with SPSS 25. The results of this
study show that operating leverage and growth asset do not effect on systematic risk,
while the size of the company does not effect on systematic risk. The implication of this
research is as a basis for consideration for potential investors who will invest in the
agricultural sector.
Keywords: Operating Leverage, Growth Asset, The size of the company, and Systematic
Risk.
1. Introduction
The purpose of investors in investing is to obtain returns in the future and improve investor
welfare. Welfare in this case is monetary welfare, which can be measured by the sum of
current income plus future income [1]. In stock investment, the income derived from the
results of this investment can be in the form of dividends and capital gains. Before investing in
shares in the capital market will collect as much relevant information as possible that will be
useful for decision making. The information collected can be in the form of company
performance such as company financial statements or macro-economic factors that effect the
company. Investors in making every investment decision always try to minimize the various
risks that arise, both short-term risks and long-term risks [2]. The step of minimizing the risks
arising in investment decides investors to the actions and strategies to keep getting the
expected return.
According to [1] there are two types of risks namely, systematic risk known as market risk
or general risk is the risk associated with changes that occur in the market as a whole and can
not be diversified. According to [3] systematic risk can occur due to macro-economic,
industrial, and company characteristics. To measure systematic risk, beta coefficients are used.
Beta security is an important thing to analyze security or portfolio. The Beta security shows
the sensitivity of the level of profit of security to market changes. While unsystematic risk is a
risk that can be eliminated by forming a good portfolio.
ICBAE 2020, August 05-06, Purwokerto, Indonesia
Copyright © 2020 EAI
DOI 10.4108/eai.5-8-2020.2301087