Conventional Capital Market Research Articles

Strategi Berinvestasi terhadap Keberhasilan Investasi Saham Syariah di Pasar Modal Syariah

Stocks and the Indonesian capital market coexisted in Indonesia in 1912, when the Indonesian capital market was first established. An Islamic regulation master named Abdurrahman Isa contends that stock trading exchanges are permitted in religion, including shares gave by banking organizations, where a portion of the exercises are revenue based credit. This is based on the circumstances of Muslims, who, in his opinion, are in a dhorurat state. This study made use of literature research, which uses information from books and other sources to investigate the method for putting into practice investment in sharia stocks as a tool for economic improvement. The English word investment, which means to plant, was adopted from the British language. According to the Dictionary of Capital Market and Financial Terms, "investment" refers to putting money or capital into a business with the intention of earning a profit. The Capital Market Law regulates the sharia capital market, which is a capital market that does not violate sharia law. In this instance, the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) continues to oversee the sharia capital market. The fundamental difference between the sharia capital market and the conventional capital market is that the sharia capital market must adhere to sharia law in all transaction mechanisms and issuers traded in it. In other words, there is no significant difference between the two markets.

The Impact of the Declaration of Presidential and Vice Presidential Candidates on Capital Market in Indonesia:

This research aims to analyze the impact of the declaration of the presidential and vice presidential candidates on the dynamics of the capital market in Indonesia. The method used is quantitative analysis with a multiple dummy variable regression approach. The results prove that the declaration of the presidential and vice presidential candidates has a significant impact on the dynamics of the capital market in Indonesia. The movements of conventional stock indices (Composite and LQ45) and sharia stock indices (JII70 and ISSI) are significantly influenced by the declaration of the presidential and vice presidential candidate pairs for the 2024 Election, with quite strong correlations (Composite 0.6242, LQ45 0.6805, JII70 0.7968, and ISSI 0.5181). The declaration of the Anies-Muhaimin pair (Capres1) is positively correlated with the movement of the Composite stock index, LQ45, JII70 and ISSI. Meanwhile, the declaration of the Ganjar-Mahfudz pair (Capres 2) and the Prabowo-Gibran pair had a negative correlation with the movement of the Composite stock index. Research facts show that the capital market responded positively to the declaration of pair number 1 (Anies-Muhainin). On the other hand, the capital market responded negatively to the declarations of pair Number 2 (Prabowo-Gibran) and pair Number 3 (Ganjar-Mahfudz). The capital market was under greater pressure after the Prabowo-Gibran pair was declared. Market pressure is greater on Prabowo-Gibran compared to the Ganjar-Mahfudz pair and the Anies-Amin pair.
 Keywords: presidential and vice presidential candidate declaration, conventional capital market, sharia capital market

Analisis Kointegrasi Antara Saham Syariah Dan Tingkat Suku Bunga

The development of Islamic economics with the application of sharia principles in economic activities is starting to be practiced in the field of sharia finance. This started with the establishment of sharia banking, then followed by the emergence of the sharia capital market as an investment tool to attract profits and seek capital. The Jakarta Islamic Index (JII) as the antithesis of the conventional capital market has challenges when carrying out investments using sharia principles, this is because securities in the form of shares are greatly influenced by macroeconomic aspects such as interest rates. So sharia share prices are very sensitive to the dynamics of interest rates. This research seeks to see the extent of the influence of interest rates on sharia sham prices at JII. The method used is VECM analysis to see long-term effects. The results of this research found that the interest rate variable did not significantly influence sharia stock prices in the long term, however the results of the VECM analysis found that there was a negative relationship, meaning that there was still an influence, although not significant. So sharia share prices can still be affected by changes in conventional interest rates.

Dampak Deklarasi Capres-Cawapres terhadap Dinamika Pasar Modal di Indonesia:

This research aims to analyze the impact of the declaration of the presidential and vice presidential candidates on the dynamics of the capital market in Indonesia. The method used is quantitative analysis with a multiple dummy variable regression approach. The results prove that the declaration of the presidential and vice presidential candidates has a significant impact on the dynamics of the capital market in Indonesia. The movements of conventional stock indices (Composite and LQ45) and sharia stock indices (JII70 and ISSI) are significantly influenced by the declaration of the presidential and vice presidential candidate pairs for the 2024 Election, with quite strong correlations (Composite 0.6242, LQ45 0.6805, JII70 0.7968, and ISSI 0.5181). The declaration of the Anies-Muhaimin pair (Capres1) is positively correlated with the movement of the Composite stock index, LQ45, JII70 and ISSI. Meanwhile, the declaration of the Ganjar-Mahfudz pair (Capres 2) and the Prabowo-Gibran pair had a negative correlation with the movement of the Composite stock index. Research facts show that the capital market responded positively to the declaration of pair number 1 (Anies-Muhainin). On the other hand, the capital market responded negatively to the declarations of pair Number 2 (Prabowo-Gibran) and pair Number 3 (Ganjar-Mahfudz). The capital market was under greater pressure after the Prabowo-Gibran pair was declared. Market pressure is greater on Prabowo-Gibran compared to the Ganjar-Mahfudz pair and the Anies-Amin pair.
 Keywords: presidential and vice presidential candidate declaration, conventional capital market, sharia capital market

CORRELATION ANALYSIS OF SHARIA CAPITAL MARKET GROWTH WITH INDEX SHARIA CAPITAL MARKET PERFORMANCE

This research is intended for informative purposes and adds insight regarding the capital market, the Islamic capital market, the growth of the Islamic capital market in Indonesia which is analyzed based on its correlation with the Islamic capital market performance index compared to the conventional capital market performance index which is tested through 3 test analyzes using the index Sharpe, Treynor, and Jensen. This research was conducted using data from 2007 to 2019. This study aims to provide information related to the relationship between the performance index of the Islamic capital market and its growth over time (2013-2019).

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI MINAT BERINVESTASI DI PASAR MODAL KONVENSIONAL PADA MAHASISWA UNIVERSITAS MERDEKA MADIUN

The aim of this study is to analyze the factors that influence the interest in investing in the conventional capital market in the students of Universitas Merdeka Madiun. The population in this study were 221 active students who were registered at the Investment Gallery in 2019-2020. The sampling technique used probability sampling with simple random sampling method. Determination of the number of samples using the Slovin formula with a margin of error of 10% obtained as many as 70 respondents. The data analysis technique uses multiple linear regression analysis, coefficient of determination analysis, hypothesis testing using t test and F test, and classical assumption test with the help of the IBM SPSS Statistics 25 program. The results show that: 1) Investment understanding partially has a significant effect on interest student investment. 2) Risk partially has no effect on student investment interest. 3) Return partially has a significant effect on student investment interest. 4) Simultaneously shows that understanding of investment, risk, and return has a significant effect on student investment interest. Based on the results of the Adjusted R Square of 51.3%, it means that there are still 48.7% of other variables that affect the interest in investing in the conventional capital market for the students of Universitas Merdeka Madiun.

Determinant of Sharia Stock price Evidence Sharia Stock Price in Indonesia and Malaysia

Determinant of Sharia Stock price Evidence Sharia Stock Price in Indonesia and Malaysia

Capital market and economic growth in Malaysia: the role of ṣukūk and other sub-components

Purpose The purpose of this paper is to explore the effects of the capital market on economic growth by considering the role of ṣukūk (Islamic investment certificates) and other capital market sub-components in Malaysia between 1998 and 2018. Design/methodology/approach The empirical investigation is based on the autoregressive distributed lag (ARDL) cointegration bounds test. Findings The results reveal the prevalence of a long-run equilibrium relationship between capital market variables and economic growth. As expected, bond market components (ṣukūk and conventional bonds) have a positive, albeit insignificant influence on economic growth. In contrast, in the long-term, stock market development – regardless of the indicator used on economic growth – is shown to have a significant and positive effect. The study suggests that stock market sub-components affect Malaysia’s economic growth the most. Research limitations/implications The primary limitation of this study is that only corporate ṣukūk were considered, while government ṣukūk were excluded from the estimation due to a lack of requisite information, resources and data. Practical implications A strategic framework should be established, especially in pricing efficiencies. Furthermore, there is a need to create more awareness on the benefits of ṣukūk investment among conventional bond investors, including retail investors. Thus, there will be more players in the ṣukūk market, and this will help to improve market liquidity. Originality/value Apart from conventional capital market sub-components, this study takes into account ṣukūk as a sub-component in the capital market on economic growth using the ARDL framework. Also, this study particularly concentrates on the world’s largest ṣukūk issuer, Malaysia, rather than focusing on other ṣukūk-issuing countries.

REKONSTRUKSI SISTEM PENYELENGGARAAN PASAR MODAL SYARIAH

The capital market that is widely used by people is not in accordance with the provisions contained in sharia principles. Therefore, a capital market with sharia. Conventional capital markets and Islamic capital markets have a similar concept but differ in principles and have different types of contracts. This difference between conventional capital market principles and the principles contained in the Islamic capital market results in the need for regulations that specifically regulate the Islamic capital market. so it is necessary to update the Law No. 8 of 1995 concerning Capital Markets. Judging from the legal system, the Sharia Capital Market still has weaknesses related to the legal substance, legal structure and legal culture so that reconstruction of Islamic capital market regulations must be conducted. The method used in this writing is analytical descriptive and uses a normative juridical approach.

ANALISIS EFISIENSI PASAR MODAL KONVENSIONAL BENTUK LEMAH DI BURSA EFEK INDONESIA PERIODE 2014-2015

The purpose of this study is to determine efficiency in a weak form conventional capital market in Indonesia using stock price data weekly in the 2014-2015 period. Techniques in testing market efficiency forms. This weakness uses a purposive sampling technique as well as a method for data collection using the documentation method. Obtained 36 companies which is included in the LQ-45 index which is used as a research sample. Testing the hypothesis of a weak form of capital market efficiency using the run test test. The results of this study, that the conventional capital market is efficient in a weak form using stock price information for the period research. It is proven by 33 shares (91.7%) moving randomly (random) and 3 shares (8.3%) move non-randomly (not randomly). Then it can be concluded that the conventional capital market is efficient in its form weak.

Islamic Screening Mechanism of Islamic Capital Market—A Comparison Between the Fatwa—DSN-MUI, the Kuala Lumpur Stock Exchange Islamic Index and the Dow Jones Islamic Market Index

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Indonesian Capital Market Efficiency: Islamic vis-a-vis Conventional

Capital market efficiency is one of the most important part in finance theory, in which assume the price of stock will fully reflect the information available in the market, hence the price will adjust directly and quickly. The objective of this study is to evaluate the efficiency of both Islamic and conventional stock markets, particularly in case of Indonesia. Event study of King Salman Visit in Indonesia was used as testing periods. Abnormal return and average abnormal trading volume activity of 30 companies listed in Jakarta Islamic Index (JII) to represent Islamic capital market and 17 companies listed in LQ45 to represent conventional capital market were employed to explain this issue. The result shows that from abnormal return perspectives both Islamic and conventional capital market are efficient. While from abnormal trading volume activities, shows that during the visit of King Salman, the trading activity in Islamic capital market is increased significantly rather than conventional counterpart. Keywords: Islamic capital market, capital market efficiency, abnormal return and abnormal trading volume activity

Risk and Returns in Shari’a Compliant Cross-Section Stocks: Robustness Test of Application and Anomalies of CAPM

Islamic finance is relatively new branch of knowledge whereby activities of market participants are regulated by Shari’a (Islamic law). Islamic finance is expanding to capital market in addition to traditional banking services. This study is intended to understand and document the asset pricing mechanism of Shari’a compliant securities. We selected the well researched market index variable under conventional capital market studies to test the impact in variation of stock returns on special Sample of Shari’a compliant companies on ten years monthly data (2001-10) from Datastream. We have tested basic equation of CAPM and its modified form Shari’a compliant asset pricing model (SCAPM). We also tested the return differences due to size, B/M, PER and CFY. Results favoring the strong impact of market index on stock returns (70%) and confirm the Anomalies of size, B/M, CFY and PER, while SCAPM turned slightly better in explaining variations of cross section stock returns.

The Islamic Capital Market Response to the Real Earnings Management

This study aims to prove the effect of the company's status, i.e membership on the Islamic capital market and the status as suspect firm, as a determinant of real earnings management (REM). REM is conducted by abnormally increasing sales, increasing production and reducing discretionary costs in order to achieve a certain earnings target. This study uses Earnings Distribution Analysis (EDA) technique, which refers to the Prospect Theory (Kahneman & Tversky, 1979) to identify the suspect firms. Suspect firms are companies that have small positive earnings. The samples of this research are companies listed on the Indonesia Stock Exchange in 2011 and 2012. Based on the result of regression analysis, hypothesis testing results show that the suspect firms conduct real earnings management in all three types of activities more aggressively than the non-suspect firms. Furthermore, this study also showed empirical evidence that there are differences in real earnings management actions between companies listed in the Islamic capital market compared to conventional capital markets. Then, this study also showed that the Islamic capital market is more appropriate in response to the REM than the conventional capital market.

The Role of Islamic Capital Market in the Economic Growth and Development of Global Economy – A Select Study

Raising the fund and activities of investment in the Islamic Capital Market abides to Islamic principles and laws known as “Shariah”. The Islamic religious law Shariah states that the market should be free from activities that are prohibited in Islam such as gambling, usury and ambiguity. The money transactions in the market are carried out in a way that should not lead to any conflicts with the ethics of Muslims faith. Islamic capital market plays a vital role in the economic growth and development of the country. The Islamic capital market functions as a similar and equivalent market to the conventional capital market. This plays an important and balancing role in the Islamic banking system in expanding and deepening the Islamic financial markets in Islamic world as well as other parts of the world. In this contemporary world, market became more complex and Islamic finance has recognized itself as a progressively significant factor of the global financial system with a remarkable growth record over the past decade. The Islamic capital market being a part of Islamic financial system plays a vital role in offering various modes of investment and financing opportunities to individuals as well as for corporations. Divergence of financial instrument and innovation of product in the Islamic capital market can enhance the value and raise the risk-return options for the stakeholders. The paper mainly focuses on Islamic Capital Market which is operated as per the Islamic principles and growth of Islamic Capital Market in this contemporary world.

Financial Services Authority (OJK) Policy on Debt Proportion and Its Impact on the Profitability of DES Listed Companies in Indonesia

The sharia capital market in Indonesia has different principles and criteria from the conventional capital market, and focuses on “ethics and justice”. The desired outcomes of capital market transactions should be in accordance with Islamic ethics and norms as managed in sharia. OJK (Otoritas Jasa Keuangan/ Financial Services Authority) is supervisor and manager of financial service activities in the banking sector, the capital market sector, and the IKNB (Industri Keuangan Non-Bank/ Non-Bank Financial Industry) sector. The research object is capital structure, leverage, and profit. They are managed by size, liquidity, growth, and active structure of the listed company at sharia stock. The research population is 24 companies excluded from the OJK due to a lack of criteria in their 2013-2015 quarterly financial reports. The data analyses used are descriptive statistics and inferential statistics. This analysis finds the effect of the independent variable, dependent variable and control variable simultaneously and partially. The research result shows that capital structure and leverage do not have significant effect. Keywords: OJK (Otoritas Jasa Keuangan), Debt Proportion, DES

Impact of Shariia Screening on Stock Returns: Evidence from KMI-30

Shari’a compliant stocks are the recent development under Islamic finance, whereby stocks are screened through Shari’a compliance filters. This study is conducted to understand and document the important macroeconomic (Monetary) factors contributing in determining stock prices of Shari’a compliant companies in post screening (KMI-30) era in Pakistan. We included KMI-30 Index as representative of Shari’a compliant securities. We have included four monetary variables (inflation, exchange rate, money supply and interest rate) in addition to market index in our study for 6 years period (2008-14). Evidence obtained by application of OLS regression. Findings suggests the single important variable of market index explaining Shari’a compliant stock returns and none of monetary variable turned significant. These findings confirm a strong relationship between Islamic and conventional capital market in Pakistani institutional settings.

ANALISIS EFISIENSI PASAR MODAL SYARI’AH DAN KONVENSIONAL BENTUK LEMAH BURSA EFEK INDONESIA

The analysis in this study was to test the efficiency of the Indonesian capital market in the form of weak. this research has two objeactives, the first objectives is analyze whether Indonesia capital market (convensional and syari’ah) has been efficient (weak-form). The second one is to analyze differentiation efficient market between convensional and syari’ah capital market. This study uses monthly stock price data, from 23 conventional stocks included in the index LQ45 and 2 Islamic stocks included in the index during the observation period 2012-2013 JII. To test the hypothesis efficiency of capital markets weak form using the Run Test, this test is used to test randomness stock price changes. Results from this study are in the period 2012-2013 of conventional and islamic capital market is efficient in the weak form and analyze by looking for a random number of shares on the capital market conventional and islamic capital market, the results showed that there were 22 (95.7%) share price conventional random and 2 (100%) the share price of sharia are random. Based on the analysis of Islamic capital markets more efficient than the conventional capital market.

Fiqh Issues in Short Selling as Implemented in the Islamic Capital Market in Malaysia

Islamic capital market represents an assertion of Shari`ah principles in the capital market transactions where the market should be free from any elements or activities that are prohibited in Islam. The strict adherence to Shari`ah principles also implies that all financial instruments used by transacting parties in the capital market need to be Islamic. One of the most popular and commonly used financial instruments in conventional capital market is short selling. Many finance literature assert that short-selling provides liquidity, drives down overpriced stocks and generally increases efficiency of the markets. In general, the conventional short sale is selling a stock which investor does not actually own; a transaction which would clearly violate the general Islamic rule of ‘do not sell what you do not own’. Nevertheless, the Shari`ah Advisory Council (SAC) of Malaysian Securities Commission has recently legalized the short selling instrument to be used in Islamic Capital Market in Malaysia. This paper, therefore aims to study fiqh issues surrounding the short selling instrument. Three main issues are specifically highlighted and discussed, namely the issue of bay`ma`dum (selling what the seller does not own), the eligibility of stock as object of a loan contract and benefiting from loan contract. يمثل وجود أسواق المال الإسلامية التأكيد على المبادئ الإسلامية التي تستلزم خلو معاملات تلك الأسواق من كل المعاملات والأنشطة المحرمة في الإسلام. كما أن الالتزام الصارم بمبادئ الشريعة يتطلب أن تكون الأدوات المالية المستخدمة من قبل الأطراف المتعاملة في أسواق المال إسلامية. أحد الأدوات المالية الشائعة الاستخدام في أسواق المالية التقليدية هي البيع القصير (Short Selling)، لأن أدبيات التمويل التقليدي تؤكد على أهمية هذه الأداة لأنها وسيلة لتوفير السيولة، كما أنها تساهم في تخفيض قيمة الأدوات المرتفعة الثمن (Overpriced Stocks)، وفي كفاءة أسواق المال. إن عملية البيع القصير التقليدية تنطوي في العموم على بيع الأسهم التي لا يملكها المستثمر. وهذا تطبيق يخالف المبدأ الإسلامي الذي يحرم بيع الإنسان ما لا يملك. وعلى الرغم من هذا فإن مجلس الشريعة الاستشاري (SAC) التابع لهيئة الأوراق المالية الماليزية قد أباح استخدام هذه الأداة في سوق المال الإسلامي الماليزي مؤخرا. تهدف هذه الورقة إلى دراسة القضايا الفقهية المتعلقة بهذه الأداة، بمناقشة ثلاث قضايا رئيسة وهي: بيع المعدوم، وإقراض الأسهم، ومدى الانتفاع من عقد القرض.