Abstract
Background – One of economic indicators of a country is the capital market. Liquid capital market can attract investors, both foreign and domestic investors, to invest their ownership in that country, which in turn can improve the country’s economic growth. Aim – This research aims to examine the influence foreign ownership on stock market liquidity in Indonesia. Design / methodology / approach – This research splits foreign ownership into two groups, the first one is foreign ownership by financial institutions, and the second one is foreign ownership by non-financial corporations. The type of data used is panel data using fixed effect model (FEM). The technique for examining the influence of foreign ownership on liquidity used multiple regression analysis. Findings – The result found that foreign ownership by financial institutions and non-financial corporations negatively affect liquidity. The study also found a positively non-linear effect between foreign ownership by financial institutions to liquidity and a negatively non-linear effect between foreign ownership by non-financial institutions to liquidity. Research implication – This research can assist investors in determining investment in the Indonesian capital market by pay attention to variables such as foreign ownership, return, turnover, market capitalization and standard deviation. Limitation – The research period was short, which was only 21 months due to limited data and the research period that has passed too long, that is January 2012 to September 2013.
Highlights
Aim – This research aims to examine the influence foreign ownership on stock market liquidity in Indonesia
The result found that foreign ownership by financial institutions and non-financial corporations negatively affect liquidity
Pengaruh yang diharapkan dapat memberikan saran negatif juga sejalan dengan adverse kepada Bursa Efek Indonesia untuk lebih selection hypothesis yang menyatakan memperhatikan aliran kepemilikan asing ke apabila jumlah kepemilikan meningkat pasar modal kita, karena kepemilikan dari institusi yang lebih terinformasi, asing merupakan salah satu faktor yang dalam kasus ini berarti institusi mempengaruhi likuiditas di pasar modal keuangan asing, akan menyebabkan
Summary
PENDAHULUAN Pasar modal sebagai salah satu indikator perekonomian suatu negara dituntut untuk mengikuti suatu perubahan dan perkembangan dalam rangka memenuhi kebutuhan dan keinginan pasar serta untuk meningkatkan perekonomian suatu negara. 2. Melihat bagaimana kepemilikan asing meningkatkan sumber pendanaan dari luar oleh institusi non-keuangan (resourceeffect), dan (3) meningkatkan nilai mempengaruhi likuiditas pasar modal di saham yang pada akhirnya meningkatkan. Froot dan Ramadorai (2001) menyatakan apabila investor asing memiliki kemampuan investasi yang lebih baik yang dapat membatu mereka dalam menganalisa kondisi pasar untuk mengambil keputusan investasi dibandingkan dengan investor lokal. Hipotesis Penelitian Hasil penelitian Rhee dan Wang (2009) menunjukkan apabila kepemilikan institusi asing di Indonesia akan berpengaruh negatif terhadap likuiditas pasar modal Indonesia di masa yang akan datang. Penelitian ini juga menyertakan hasil kuadrat dari seluruh variabel kepemilikan saham oleh institusi keuangan dan non-keuangan asing dan domestik digunakan untuk melihat adakah pengaruh non-linier dari keempat variabel tersebut terhadap likuiditas. HASIL DAN PEMBAHASAN Analisis Hasil Pengujian Data keuangan (FCORP) serta seluruh variabel kontrol terhadap bid-ask spread
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
