Effect of 2008 and 2016 U.S Presidential Election in the Indonesian Stock Market

The U.S. Presidential election was an event that received widespread attention across the globe. In the 2008 presidential campaign, Barrack Obama nominated to be the first black President. In 2016, Hillary Clinton potentially become the first woman President in American history, while the other candidate, Donald Trump, made some unpopular and controversial proposals. The purpose of this paper is to analyze whether the 2008 and 2016 election were considered as the relevant information in the Indonesian Stock Market (IDX). The daily closing prices of all all share listed in IDX would be examined used event study method. The results provide insight about the responsiveness of IDX participants to the US Presidential election event that could be used in decision making

APLIKASI WIPO (WITHDRAWN INITIAL PUBLIC OFFERING) MODEL TERHADAP ANOMALI PADA PASAR PERDANA

Study on Initial Public Offering (IPO) showed anomaly that IPO stocks averagely were underpriced, underperformed in the long-run aftermarket and "Hot" and "Cold" market cycle.These paper explained IPO anomaly by using theoretical model (the Withdrawn IPO or WIPO Model) and an empirical investigation of the WIPO Model in Indonesia and United States. The results of the empirical research revealed that the Withdrawn IPO (WIPO) can explain the observe positive average Initial Return (IR) and the model can explain the long term underperfomance and "Hot" and "Cold" market. Abstract in Bahasa Indonesia : Penelitian pada pasar perdana atau Initial Public Offering (IPO) menunjukan adanya anomali yakni Saham IPO secara rata-rata underpriced, kinerja jangka panjang yang jelek dan adanya siklus pasar "Hot" dan "Cold". Tulisan ini mencoba menjelaskan anomali IPO tersebut dengan menggunakan model teoritikal (Withdrawn IPO atau WIPO Model) dan melakukan investigasi empiris dari WIPO Model tersebut pada pasar IPO di Indonesia dan Amerika Serikat. Hasil dari penelitian empiris menunjukkan bahwa Withdrawn IPO (WIPO) dapat menjelaskan rata-rata positif Initial Return (IR) dan kinerja jangka panjang yang jelek dan siklus pasar "Hot" dan "Cold". Kata kunci : Anomali, Initial Public Offering (IPO), Withdrawn IPO (WIPO), Underpriced, Kinerja Jangka Panjang , Pasar "Hot" dan "Cold"

PROBLEMA ANOMALI DALAM INITIAL PUBLIC OFFERING (IPO)

This study on Initial Public Offerings (IPO) showed that IPO stocks on average were underpriced, underperformed in the long run aftermarket and the Hot and Cold market cycle was present. These phenomenom can be explained by among others, the following: Asymetric Information, Winner's Curse, Traditional-Ibbotson, and Signalling Equilibrium Phenomenom. However, all of these can't give a satisfactory explanation because they were based on the price which existed on the secondary market (Underpriced Theory). The Withdrawn IPO (WIPO) theory tried to explain the IPO anomaly differently so that the IPO anomaly could be explained clearly. Abstract in Bahasa Indonesia : Studi tentang Penawaran Saham Perdana (IPO) menunjukkan saham-saham IPO secara rata-rata mengalami Underpriced, kinerja jangka panjang yang jelek dan adanya siklus pasar "Hot" dan "Cold". Ada beberapa penjelasan terhadap fenomena tersebut, antara lain: Informasi Asimetri, WinnerCurse, Tradisional-Ibbotson, Signaling Equilibrium Phenomenom tetapi semuanya belum memuaskan karena berdasarkan pada basis harga yang ada di pasar sekunder (Teori Underpriced). Teori Withdrawn IPO (WIPO) mencoba menjelaskan fenomena anomali IPO dengan cara yang berbeda sehingga fenomena anomali IPO dapat dijelaskan secara tuntas. Kata kunci: Penawaran Saham Perdana (IPO), Underpriced, Withdrawn IPO (WIPO)

The Effect of Financial Literacy, Financial Risk Tolerance, and Financial Socialization Agents on Stock Investment Decision in the Millennial Generation

This study aims to determine financial literacy, financial risk tolerance, and financial socialization agents� effect/influence on stock investment decisions in the millennial generation. The research was conducted by distributing questionnaires to 400 millennial generation stock investors in Indonesia. The data analysis method by Structural Equation Modeling (SEM) using the SmartPLS 3.2.7 program. The results show that financial literacy has a significant effect on investment decisions. Financial risk tolerance has a significant effect on investment decisions; meanwhile, financial socialization agents do not significantly affect investment decisions

Price Earnings Ratio and Stock Return Analysis (Evidence from Liquidity 45 Stocks Listed in Indonesia Stock Exchange)

Price to Earnings Ratio (PE Ratio) has been broadly used by analysts and investors for stock selection. Stocks with low PE ratio are perceived as having cheaper current price hence expected to generate higher return in subsequent period. This paper aims to examine predictability of stock return using PE Ratio based on historical relationship between PE Ratio and subsequent stock return. Particularly, it seeks to find whether stocks with high PE Ratio followed by low stocks return and on the contrary, stocks with low PE Ratio followed by high stocks return. Using stocks which are included as member of Liquidity 45 and observation period 2005-2010 as samples, results show that there is significance difference between low PE and high PE portfolio stock return in short term (holding period of 6 months) but there is no significance difference between both portfolio stock return if they are hold for one, two, three, and four years. This research also finds that there is no significant relationship between stock return and (trailing) PE Ratio which suggests that (trailing) PE Ratio is not useful in estimating both short term and long term stock return

Owner’s Commitment to the Planning and Controlling Processes to Improve Performance in Small and Medium Manufacturing Companies

Owners of small companies usually have the role as the top management that has to commit to the provision of time, cost, and resources. For the top management, the most important aspect to run the business is to develop and to create a value for the company so that the value can increase the performance. Based on the previous researches, good commitment and leadership style from the top management have effects on planning and controlling processes in improving organization performance. Meanwhile, the survey results from interviewing and collecting questionnaires from 110 practitioners of small manufacturing companies and examining the hypothesis create a fit model which has been thoroughly tested using Partial Least Square (PLS). After the PLS test, the results show that: first, there is a positive effect but not significant commitment from the company owners to the effectiveness of the company planning processes second, there is a positive effect and significant commitment from the company owners to the effectiveness of the controlling processes third, planning process conducted by departments inside the company has positive effect and significance to the controlling processes in small companies fourth, the planning process conducted by companies has positive effect and significance to increase company performance fifth, the controlling process conducted by companies has positive effect and significance to increase company performance. Further exploration, owners of small companies in East Java have the tendency not to focus on planning process but to stress more on controlling process

INVESTOR SENTIMENT AND STOCK RETURNS DURING COVID-19 PANDEMIC IN INDONESIA

The Covid-19 pandemic had an impact on financial markets, included Indonesian capital market. In addition, the capital market gave benefits to investor and contributed to economic development in Indonesia. The COVID-19 pandemic has caused concern for stock market investors. However, companies had a high interest to enter the stock market. Therefore, the factor that affected investor sentiment need to identified as the causes of stock price fluctuations. This study aimed to predict investor sentiment, and macroeconomics (interest rates, and inflation) on stock returns during the COVID-19 pandemic in Indonesia. Investor sentiment interpreted as the tendency of investors to speculate. Investors were overly optimistic or pessimistic about an investment risk could influence stock prices for a significant period of time. The Covid-19 pandemic made investors pessimistic about the future of companies in Indonesia. This study used stock return variable measured by the monthly Jakarta Composite return index data. Investor sentiment variable proxied by monthly consumer confidence index data. Macroeconomics variables measured by monthly interest rates, and monthly inflation during March 2020 � April 2021. This research used the Classical Linier Regression Model (CLRM) with Augmented Dickey-Fuller (ADF) Test and Wald Test. Results revealed, investor sentiment had a significant impact on the stock returns during the covid-19 pandemic. However, interest rate and inflation had not a significant effect on the stock returns during this period. The government, financial institutions, and investors could consider the results of this study before made a decision. However, this study was limited by its short period

The Effect of Auditor’s Reputation, Underwriter’s Market Share and Spread on Underpricing of Indonesian Initial Public Offerings

The presence of capital market supporting professions and institutions such as auditor and underwriter are required by the Indonesia Stock Exchange (IDX) to assist issuing company in the process of going public. Using a total of 156 non-financial firm IPOs listed on IDX during the period 2007-2017, the main purpose of this paper is to investigate the effect of auditor’s reputation, underwriter’s market share and spread on level of underpricing, The method used in this paper is pooled Ordinary Least Squares (OLS) regression. Findings of this paper showed that underwriter’s market share and auditor’s reputation have a significant negative effect on level of underpricing, while underwriter’s spread is insignificant to underpricing. This paper concludes that in Indonesia underpricing is lower for IPO firm that associated with reputable auditor and high-market share underwriter. Also, underwriters use their spread to substitute underpricing rather than using it as a complemen

Decisions for Stock Investment among University Students

This study aimed to investigate the effect of economic value added and profitability on created shareholders value Fernandez model and market value added model in manufacturing companies listed on the Indonesia Stock Exchange period year 2013 to 2018. The samples are fifty Manufacturing companies enterprises listed on the IDX period year 2013 to 2018. Methods of data analysis was performed using panel data regression with pooled OLS model. The results of this analysis showed profitability have a significant effect on created shareholders value Fernandez model and market value added model in manufacturing companies listed on the IDX period 2013 to 2018

Capital Structure Determinants in Property and Real Estate Company in 2013 to 2018

This research is to recognize the factors supporting the property and real estate company in determining the capital structure composition. The population of this research is all the property and real estate company listed on the Indonesia Stock Exchange 2013 to 2018. There are 48 companies listed until 2019. The data analysis employs a stratum test. The results of this research are the company’s performance, profitability influencing the capital structure, growth that does not influence the capital structure, nondebt tax shield influencing capital structure, and liquidity does not influence capital structure. In the company’s risk, the collateral value of assets influences capital structure; on the other hand, the business risk does not influence the capital structure. In the company’s characteristics, company size does not influence the capital structure