NET BUYING (SELLING) INVESTOR ASING DAN PERUBAHAN KURS TERHADAP PERGERAKAN INDEKS PASAR

The article tested net buying selling in Jakarta Stock Exchange. JSX index stated an amazing leap during 2006 however the performance was affect by foreign investor rather than domestic investors. The research indicates that net buying selling forces by foreign investors and the fund transfer during transaction will affect the foreign exchange rate (USD to IDR). The study argues the increasing rate of net buying selling also increase the volatility of exchange rate. Using TARCH model, the research found significant result that supported the argument. The research also test the robustness of data using stationary test. Therefore, the result statistically hold and TARCH model plus AR (1) also hold during the analysis

Behavior of Global Investors in Five ASEAN Stock Markets in the Industry Level

When the capital markets in ASEAN are integrated, global investors can still pursue the benefits of international diversification more than in the country level but in also in the industry level. The intended international diversification is diversification between industries. To implement this diversification between industries, measurement tools are needed to determine the benefits of international diversification directly. The intended instrument tool is a correlation which in this study uses country level correlation and industry level correlation. In order for these two correlations to be effective, it is necessary to make a hypothesis test to find if there is a difference in the level of integration between country and industry levels in ASEAN. To analyze industry level correlations, Equally Weighted and Value Weighted estimation procedures are required to test the construction of industry sector sample data according to GICS. The results show that there are differences in the level of integration between country and industry levels in ASEAN and the implication that the Indonesian capital market provide the greatest benefits and global investors could utilize all GICS industrial sectors as a reliable portfolio. The practical implications of these final result is choosing countries and industries are the best for the portfolios

Herding behavior in the Indonesian Stock Exchange: the roles and contributions of foreign investors during the period 2006 to 2011

Domestic investors in the Indonesian capital market (IDX) tend to be very dependent on the behavior of foreign investors. It is assumed that most of the domestic investors in the IDX are like this, caused by an axiom that the bargaining position of foreign investors is stronger than that of the domestic investors and those of other emerging markets. This study tries to investigate whether the herding behavior exists and whether the assumption that foreign investors have caused instability is true or just a myth during the period 2006-2011.There are three objectives of the study: 1) To prove whether the conduct of domestic investors’ herding behavior in the IDX exists, 2) To prove whether the trading of foreign investors causes the herding behavior and 3) To prove whether the interaction between foreign and domestic investors affect the stock volatility. Using the data from 2006 to 2011, it is found that herding behavior in the IDX exists; moreover, by using VAR analysis, it also indicates that the occurrence of herding behavior is caused by negative feedback trading from foreign investors. The volatility analysis using Parkinson and Garman-Klass methods found the stock volatilities in the IDX increased, caused by the interaction of foreign and domestic investors

Information Asymmetry And The Role Of Foreign Investors In Daily Transactions During The Crisis; A Study Of Herding In The Indonesian Stock Exchange

The purpose of this study is to prove that there was herding behavior by domestic investors following that of foreign investors in the Indonesian Capital Market (IDX) and that the herding was influenced by information asymmetry. It began when global investors undertook international diversification to the IDX because the returns on their portfolios were not on the efficient frontier during the crisis and because of the low correlation between Indonesia’s economy and the American and European economies. Utilizing the IDX daily transaction data during the years 2009-2011, the herding behavior of domestic investors, which followed that of foreign investors, was tested by Lakonishok models as was the influence of information asymmetry on the herding. It was found that the herding behavior in the IDX occurred in buy, sell or entire herdings (buy and sell). There were 0.40 to 0.55 buy herdings and 0.20 to 0.40 sell herdings during the crisis in 2008 and 2009. Buy herding then continued in 2010 onwards, although with lower intensity (0.05 to 0.20); however, sell herding decreased dramatically, and there has been almost no sell herding since then. Nevertheless, domestic investors did then sell in the opposite strategy, which was to sell when foreign investors tended to buy. Subsequent findings demonstrated that herding occurred with the influence of information asymmetry between domestic and foreign investors

Price formation around dividend announcement date : empirical evidence in Indonesian stock exchange

Purpose: This research aims to prove that there is a change in abnormal return around the dividend announcement date. Based on differences in the interests of rational and irrational investors related to the dividend announcement and subsequent event, the authors propose two research questions: first, whether there is an abnormal return around the dividend announcement date; second, whether price changes around that event. Design/Methodology/Approach: The time span of the study was five days before and five days after the announcement date of 15 companies which announced dividends from 2007-2012. To answer the first question, we used the t-test and to answer the second question, we employ the coefficient of multiple regression equations, namely the bid and ask price. Findings: The results of this study indicate significant abnormal returns around the dividend announcement date. The price formation is not influenced by dividend announcement, but it was influenced by the demand and the bid prices which implies that there is an effort of investors to maximize capital gains by selling and buying certain stocks. Practical Implications: Dividend announcement date still contains information for investors, because the possibility of surprise factor has been reduced. Investors have already received the rumors about the dividend announcement date and the event has received financial reports, which may have been used by investors in predicting the stock price. Originality/Value: Our study is the first to link bid and ask price to the price formation process before and after the dividend announcement date. The results of this test have answered the question that there are price changes during the dividend distribution event for testing individual levels of the company.peer-reviewe

SOSIALISASI : LATAR BELAKANG, PROSES DAN TAKTIK

This article will explain about the socialization of the organization. The first explanation is concerning with the motivation of the socialization process. These motivations are occupational stereotypes and ambiguous problem. Occupational stereotypes make different perception about organizational situation toward more applicants while ambiguous problem makes different importance and expectation between new comers with the old member. Thus, the presence of socialization is expected to reduce the occupation stereotypes and ambiguous problem by giving the real preview about in organization and the uniformity about expectation and importance between new comer and the organization.  By understanding the stage of the process and the tactics of socialization, it will be expected the organization could conduct the socialization process efficiently and effectively

SOSIALISASI : LATAR BELAKANG, PROSES DAN TAKTIK

This article will explain about the socialization of the organization. The first explanation is concerning with the motivation of the socialization process. These motivations are occupational stereotypes and ambiguous problem. Occupational stereotypes make different perception about organizational situation toward more applicants while ambiguous problem makes different importance and expectation between new comers with the old member. Thus, the presence of socialization is expected to reduce the occupation stereotypes and ambiguous problem by giving the real preview about in organization and the uniformity about expectation and importance between new comer and the organization.  By understanding the stage of the process and the tactics of socialization, it will be expected the organization could conduct the socialization process efficiently and effectively

The Simulataneity of Dividend and Capital Structure Decisions:The Case of Indonesia Capital Market

This study explains the sinrultaneity of dividend and capital structure decisions using the agency cost framework. Noronha et al. ( 1996) found that the simultaneity of dividend and capital structure decisions only occurred on low growth and no blockholder firms. Increasing dividend payment and debt simultaneously is used to decrease the agency cost by shifting the monitoring activity to capital market. The findings of this study can be summarized as follows. (1) Simultaneity of dividend and capital structure decisions occurs only on the firms with characteristics of low growth and no blockholder. Four variables are tested as determinants of the simultaneity. These variables are: insider holding, number of shareholders. earnings volatility and non-debt tax shield. Only non-debt tax

Earning Management Actions and Conditional Revenue as Managerial Efforts to Maintain Bond Rating

The purpose of this study is examine the analysis of factors affecting Bonds rating of non-financial companies listed on Indonesia Stock Exchange for the period 2012-2016. Sample was selected using purposive sampling method amounted to 30 companies. Data processing techniques using multiple regression analysis what helped by SPSS program. The result of this study shows that partially company’s size, company’s growth, and auditor size have significant influence on bonds rating, while the earnings management have no significant effect on bonds rating. This result supports the Heintz (2017) study that management will think twice about earnings management when rating bonds. This is based on the principle of transparency in corporate governance that the actual company's performance will better reflect the company's position as a good bond issuer. However, this study shows that company’s size, company’s growth, and auditor size have a significant effect on bonds rating respectively. This result proves once again that in determining the bond rating, the factor of firm size, growth and auditor size are very important factors in bond rating. Without having to do earnings management then if the company has good size, growth and auditors size related then it will also be good to bond ratings according to the criteria of these rating providers