Notice of Retraction: The Investment Risk Effect of Stock Returns In LQ-45 Index Companies on Foreign and Domestic Investors:

Abstract

This article has been retracted by the publisher.

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This article has been retracted at the request of the Authors. The editors and authors have jointly made the decision to retract the paper. Reasonable effort should be made to remove references to this paper.

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Foreign and domestic investors may have an impact on changes in LQ-45 stock returns on the Indonesia stock exchange. The impact given by foreign and domestic investors can be negative or positive for the capital market. The purpose of this study was to find empirical evidence of the effect of systematic risk by foreign and domestic investors on changes in stock returns. The research method uses quantitative methods from the stock trading reports of LQ-45 companies.  The data is processed using the IBM 25 SPSS statistical tool. The population in this study is the stock return of LQ-45 companies listed on the Indonesia Stock Exchange. Sample data is the stock return of the LQ-45 Companies on January 2, 2020-2023. The novelty of the study is the systematic risk variable, which is the driving force to moderate the influence of foreign and domestic investors on stock returns. The results of the study showed that the systematic risk variable had a negative effect on stock returns, foreign investors had no effect on stock returns, and domestic investors had a positive effect on stock returns. The amount of low systematic risk can affect the increase in stock returns. The number of domestic investors can affect the increase in stock returns. The study could have practical implications for investors, regulators, policymakers, and academics by providing empirical evidence and insights into the interplay between systematic risk, investor types (foreign and domestic), and stock returns in the Indonesian capital market.