The Effect of Bid-Ask Spread, Market Value, Risk of Return, Dividend Payout Ratio, Return on Asset and Company Age on Holding Period in Indonesia

Abstract

This study aims to determine the effect of the bid-ask spread, market value, risk of return, dividend payout ratio, return on assets, and firm age on the holding period of the LQ45 stock index. The objects of this research are companies listed on LQ45 on the Indonesia Stock Exchange for the 2019-2021 period. The data analysis technique in this study was quantitative analysis expressed in numbers and calculations using statistical methods with the help of E-Views 10 software. This study used a sample of 36 companies taken by the purposive sampling method. The data analysis used is the classical assumption test, multiple linear regression analysis, and hypothesis testing. The results showed that market value and return on assets had a significant positive effect and risk of return had a significant negative effect on the holding period, while the bid-ask spread, dividend payout ratio, and company age had no effect on the holding period. Based on the Adjusted R2 value, there is still 51.26 percent of the holding period variable which is influenced by other variables outside the independent variables of this study.