Analysis of Determinant Factors Affecting Investment Opportunity Set and Automotive Industry Stock Return on The Tokyo Stock Exchange

Abstract

This study aims to analyze the relationship between capital structure, profitability, and dividend policy on stock returns with investment opportunity set as an intervening variable in companies listed on the Tokyo Stock Exchange Transportation Equipment Sub-Sector and members of the Japan Automobile Manufacturers Association in 2015-2024. This study uses a lag time treatment on the Capital Structure, Profitability and Dividend Policy variables with the aim of finding a stronger and more significant correlation on the variables studied, the data collection technique used is the documentation technique processed using the Path Analysis method using SPSS Amos software. 26. The results of the study indicate that the influence between Capital Structure, Profitability, and Dividend Policy on Investment Opportunity Set is not significant. The influence between Capital Structure, Profitability, and Dividend Policy on Stock Returns through Investment Opportunity Set as an intervening variable is not significant. While the influence between Investment Opportunity Set on Stock Returns is significant.