Investors In Capital Market Research Articles

The Impact of Corporate Environmental Information Disclosure on Investor Attitudes in A Carbon Neutral Context

With the rapid development in the field of technology and production, the adverse consequences of energy-intensive industries have become impossible to ignore. The frequent occurrence of extreme weather, loss of biodiversity, and degradation of ecosystems across the globe has made the process of global environmental governance particularly urgent. In order to meet the needs of sustainable development strategies, many countries have begun to emphasize the fulfillment of corporate environmental responsibility and have put forward a series of requirements for environmental information disclosure. At the same time, the general public has also actively responded to the state's call to monitor corporate emissions behavior. This study focuses on individual investors in China's capital market, using a survey method of designing a scale, distributing a questionnaire, and analyzing it with SPSS to explore their attitudes toward environmental information disclosure of heavily polluting enterprises. The study finds that investors are more favorable to enterprises with higher levels of environmental information disclosure, especially in today's environmentally conscious world. Such disclosure not only increases public trust in the enterprise and enhances its image, but also helps investors to more accurately assess the long-term value and sustainable development prospects of the enterprise. This study aims to provide more targeted and effective disclosure strategies for enterprises to promote the realization of both economic and social benefits. This study provides important insights and guidance for Chinese heavy polluters in addressing environmental challenges and sustainable development.

An Investigation on the Performance of Capital Market Instruments and Investment Banks

Yatırım ve kalkınma bankaları bir ülkede finansal sistemin önemli unsurlarındandır ve ülke ekonomisinde tasarrufların finansal sisteme aktarılması aşamasında kilit role sahiptir. Bu süreçte tasarrufların reel sektörü fonlaması çok önemlidir. Bu durum ancak sermaye piyasasının güçlü dinamiklere sahip olabilmesi ve kalkınma ve yatırım bankaları gibi aracı kurumların sağlam finansal yapıları sayesinde mümkün olabilecektir. Bu bakımdan tasarrufların, sermaye piyasasının ve kalkınma ve yatırım bankacılığının gelişmişliği ülke ekonomisini ve dolaylı olarak toplum refahını da artıracaktır. Bu çalışma ile Türkiye’de faaliyet gösteren kalkınma ve yatırım bankalarının finansal performanslarının sermaye piyasası araçlarının gelişimi ile aralarında bir nedensellik bağının bulunup bulunmadığı araştırılmıştır. Araştırma sonucunda finansal performansın kıymetli maden depo hesapları, devlet iç borçlanma senetleri, hisse senedi ihracı, özel sektör borçlanma araçlarının ihracı, varlık teminatlı menkul kıymetler, varlığa dayalı menkul kıymetler, varantlar ve sertifikalar gibi menkul kıymetler ile aralarında bir nedenselliğin bulunduğu sonucu elde edilmiştir.

Analysis of the Influence of Behavioral Bias on Investment Decisions of Young Investors in Surabaya

The purpose of this study was to determine the effect of the illusion of control, financial literacy and herding bias on the investment decision making of young investors in Surabaya. The population in this study are capital market investors who are domiciled in Surabaya. The sampling technique used in this study was a purposive sampling technique with the results of sample calculations obtained by a total of 95 respondents. This study used quantitative method with data collection techniques using questionnaires which were distributed to respondents in the city of Surabaya which were then analyzed using SmartPLS 4. The results of this study indicate that there is a positive effect on financial literacy on investment decisions for young investors in Surabaya, while the illusion of control and herding bias variables have no effect on investment decisions on young investors in Surabaya.

Risk and return in the biotech industry

PurposeBiotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding, potentially stifling innovation. This study aims to explore into the appeal of biotech companies to capital market investors, whose financial backing could bolster the growth of the biotechnology sector.Design/methodology/approachThis paper uses a dataset of 774 US publicly listed biotech firms to investigate their risk and return characteristics by comparing them to pharmaceutical firms and a sample of matched non-biotech R&D-intensive firms over the sample period 1980–2021. Tests show that the conclusions remain consistent across diverse methodological approaches.FindingsThe paper shows that biotech companies are riskier than the average firm in the market index but outperform on a risk-adjusted basis both the market and a matched group of R&D-intensive firms. This is particularly true for large capitalization biotech, which is also shown to provide a diversification benefit by reducing the downside risk in past crisis periods.Originality/valueThis paper provides insight relevant to the current debate about the overall performance of the biotech industry in terms of policy changes and their impact on small, early-stage biotech firms. While small and early-stage biotech firms are playing an increasing role in scientific innovation, this study confirms their greater vulnerability to financial risks and the importance of access to capital markets in enabling those companies to survive and evolve into larger biotech.

UNDERSTANDING GEN Z INVESTMENT DECISIONS: CAPITAL MARKET LITERACY AND EMOTIONAL BIASES

This study aimed to advance behavioral economics, specifically behavioral finance bias and literacy, in Generation Z investment decisions. The research data used 389 Generation Z capital market investors who were members of the investor community group. The data analysis technique used the PLS-SEM approach. The study's results revealed that capital market literacy, overconfidence bias, confirmation bias, and fear of better options wielded substantial influence over the investment decisions made by Generation Z individuals within the Indonesian capital market. Interestingly, it was observed that mental accounting exhibited an insignificant effect on these investment choices. These empirical insights not only enhanced comprehension of investors' financial behaviors within the capital market but also offered valuable insights to stakeholders in the capital market ecosystem, aiding them in comprehending and addressing the behavioral biases inherent in the decisions of capital market investors.

Pengaruh Pengetahuan Pasar Modal, Motivasi, Return Investasi dan Resiko Terhadap Minat Investasi di Pasar Modal

The purpose of this study is to examine Capital Market Knowledge, Motivation, Return on Investment, and Risk affect investment interest. The sampling technique used is purposive sampling. In this study, the population used was 200 millennial generation respondents such as students or business people who were born in 1982-2003 in the city of Medan. There were 133 samples that met these characteristics. This study used a quantitative method where researchers distributed questionnaires to be filled out by respondents with the help of the SPSS test tool. Multiple linear analysis is used in data analysis methods. Analytical tests used include normality tests, multicollinearity tests, reliability tests, validity tests, and classical assumption tests. The results of the study show: 1) Investment interest has a positive effect on capital market knowledge (X1), with a regression coefficient of 0.212; 2) A positive relationship between investment interest and motivation (X2) with a regression coefficient of 0.108; 3) A positive relationship between investment interest and investment return (X3), with a regression coefficient of 0.369; 4) A positive relationship between investment interest and risk (X4) which has a regression coefficient of 0.126. Investment interest is influenced by capital market knowledge and investment returns. Investment interest is not influenced by motivation and risk.

A search of investors' trading practices in the Bangladesh capital market

PurposeThis research mainly intends to ascertain the stimulus of investor investment tendencies on the amount of capital investment in the share market.Design/methodology/approachUtilizing a sample of 477 individual investors who actively trade on the Bangladesh capital market, this empirical study was conducted. The objective of this examination is to ascertain the investment trading behavior of retail investors in the Bangladesh capital market using multiple regression, hypothesis testing and correlation analysis.FindingsThe coefficients of market categories, preferred share price ranges and investment source reveal negative predictor correlations; all predictors are statistically significant, with the exception of investment source. Positive predictive correlations exist between investor category, financial literacy degree, investment duration, emotional tolerance level, risk consideration, investment monitoring activities, internal sentiment and correct investment selection. Except for risk consideration and investment monitoring activities, all components have statistically significant predictions. The quantity of capital invested in the stock market is heavily influenced by the investment duration, preferred share price ranges, investor type, emotional toleration level and decision-making accuracy level.Research limitations/implicationsThis investigation was conducted exclusively with Bangladeshi individual stockholders. Therefore, the existing study can be extended to institutional investors and conceivably to other divisions. It is possible to conduct this similar study internationally. And the query can enlarge with more sample size and use a more sophisticated econometric model. Despite that the outcomes of this study help the regulatory authorities to arrange more informative seminars and consciousness programs.Practical implicationsThe conclusions have practical implications since they empower investors to modify their portfolios based on elements including share price ranges, investment horizons and emotional stability. To improve chances of success and reach financial objectives, they stress the significance of bettering financial understanding, active monitoring and risk analysis. Results can also be enhanced by distributing ownership over a number of market sectors and price points. The results highlight the value of patience and giving potential returns enough time.Originality/valueThis study on the trading behavior of investors in Bangladesh is unique and based on field study, and the findings of this study will deliver information to the stakeholders of the capital market regarding the investors’ trading behavior belonging to different categories, financial literacy level, investment duration, emotional tolerance level and internal feeling.

DETERMINANTS OF INVESTMENT INTEREST OF THE JAMBI CITY COMMUNITY IN THE CAPITAL MARKET

The main goal of the study is to investigate how factors like investment knowledge, investment returns, investment risk, and the bandwagon effect affect people's propensity to make investments in Jambi City. The study focuses on residents of Jambi City who have a Single Investor Identification (SID). Using the Slovin formula and a straightforward random sampling strategy, samples were chosen. Respondents were given questionnaires utilizing descriptive approaches throughout the first round of data collection. The outcomes indicate that the community's inclination to engage in capital market investments is significantly shaped by their investment knowledge, investment returns, and the influence of the bandwagon effect. Conversely, the impact of investment risk on the community's willingness to participate in capital market investments appears to be less substantial. It's worth noting that the coefficient of determination (R Square) illustrates that the independent variables effectively explain investment interest, with approximately 36% of this interest attributed to factors not encompassed within the model.

A STUDY ON IMPACT OF INVESTMENT BIASES OF RETAIL INVESTORS OF INDIAN CAPITAL MARKET WITH REFERENCE TO GEN Y AND GEN Z

The research study delves to understand the investment biases exhibited by retail investors in the dynamic Indian capital market, with a specific focus on two influential generational cohorts, Generation Y (Millennials) and Generation Z. The primary objective of this study is to investigate and analyse the various investment biases that affect the decision-making processes of Gen Y (Millennials) and Gen Z retail investors. By employing combine descriptive research design, like collecting data from 120 respondents through structural questionnaires to identify factors contributing to these biases, and analysed their effects on investment decisions. The findings of this research are expected to contribute to the enhancement of investor education programs and develop tailored strategies to enhance financial literacy, promote rational decision-making, and mitigate potential risks associated with biased investment behaviours. Overall, this study highlights the shed light on the implications of investment biases on the financial well-being of Gen Y and Gen Z investors, offering valuable recommendations for financial institutions, regulators, and educators to empower these cohorts in navigating the complex Indian capital market landscape. KEYWORDS: Investment Biases, Gen Y (Millennials) and Gen Z, Indian Capital Market

The effect of the COVID-19 pandemic on corporate trade credit financing

Using a difference-in-differences (DiD) model, this study investigates the causal relationship between the COVID-19 pandemic and trade credit financing. We find that the pandemic significantly increases trade credit financing for companies that are strongly affected by COVID-19. This may because of the increasing cost of bank lending; companies turn to more flexible and less costly alternatives as a result. A parallel trend test supports this finding. This research provides implications for corporate managers, supply chain partners, and capital market investors.

Faktor Penentu Minat Investasi di Pasar Modal Syariah: Studi Pada Generasi Z Kota Malang

The Islamic capital market has enormous potential to encourage sustainable economic and financial development. Investors in the Islamic capital market are still very small when compared to the total population of Indonesia. Public interest in investing is quite low, but they do not have sufficient knowledge to assess the risks and returns of the Islamic capital market. Thus, the purpose of this study is to examine the factors that influence Gen Z's interest in investing in the Islamic capital market, risk perception, social media influencers, and disposable income. This research utilizes a quantitative methodology focused on the generation Z population in Malang City. A total of 200 research samples were collected using the incidental sampling method. The collected information was analyzed using the PLS (Partial Least Squares) method. The results of data analysis show that interest in investing in Islamic capital markets is influenced by Islamic capital market literacy, risk perception, and social media influencers. However, the results of data analysis show that disposable income does not affect investment interest. This study has practical implications for increasing Gen Z participation in Malang City in investing in the Islamic capital market. Educational efforts aimed at improving Islamic capital market literacy, effective risk management, and utilizing the positive influence of social media influencers can motivate Gen Z's interest in investing in the Islamic capital market.

Analysis of Financial Decision-Making with a Behavioral Economics Approach: Perspectives on Capital Market Investors

Analysis of Financial Decision-Making with a Behavioral Economics Approach: Perspectives on Capital Market Investors

PENGARUH STOCK SPLIT TERHADAP ABNORMAL RETURN & LIKUIDITAS SAHAM BLUE CHIP

Stock split is a corporate action intended to raise stock liquidity. When stock prices are high, the shares become inaccessible to all capital market investors. The impact of stock splits on abnormal returns and stock liquidity should be re-evaluated due to the discrepancies in prior studies. This research evaluates the influence of stock splits on liquidity and abnormal stock returns. This research utilized a sample of 27 blue-chip companies listed on the IDX that underwent stock splits from 2010 to 2022. Blue chip stocks are often the market leaders for each sector and subsector of stocks in the capital market. Variations in blue chip stocks can certainly have an impact on other common stocks in each sector and subsector. The Wilcoxon signed-rank test was used to assess differences. The study period spanned ten days, with five days before and five days after the stock split. This research discovered disparities in the abnormal returns and liquidity of the company shares that were part of blue-chip stocks before and after the stock split. This conclusion is based on the assumption that the abnormal returns and liquidity of stocks were consistent throughout the observation period (ceteris paribus).

Reaksi Pasar atas Pengumuman Larangan Ekspor Crude Palm Oil dan Produk Turunannya

This research aims to determine the reaction of capital market investors to the announcement of a ban on the export of Crude Palm Oil (CPO) and its derivative products. This research uses an event study approach for 7 days of observation in 2022. Market reactions in this research are measured using Cumulative Abnormal Return (CAR). The population of this research is oil palm plantation companies listed on the Indonesia Stock Exchange in 2022. The sampling method uses a purposive sampling technique. The number of samples obtained was 20 companies. This research uses one sample t-test data analysis techniques. The results of data analysis show that investors in palm oil plantation companies reacted negatively to the announcement of a ban on exports of CPO and its derivative products. This proves that investors pay attention to external events that can influence company performance.
 Keywords: Market Reaction; Event Study; Abnormal Return; CPO Export Ban

SOLIDITY AND IMMUTABILITY OF BEHAVIOURAL FINANCE THEORY IN CAPITAL MARKET INVESTMENT: A GLOBAL PERSPECTIVE

This study evaluated the argument that the capital market is efficient such that all information from both the past, present, and unpublished have already been reflected in the market price of security as a guide for investors in the market and that the behavior of the same investors could affect the performance of the market. To address the above concern, the researcher employed various suitable final metric tools such as the Normality/Random Walk test, Variance ratio test, EGARCH models, etc., to analyze the daily historical data from prominent capital markets, each from all the continents around the world. From the results of these tools employed, none of the markets under study follow the random walk theory within the scope of the study. The results of EGARCH and volatility clustering tests also revealed that all the countries under study exhibited the property of stock returns distribution called volatility clustering or volatility pooling, a kind of heteroscedasticity, suggesting the nonconformity of the random walk theory. The failure of the various results to corroborate the random walk theory shows that investors are rational and unpredictable. These results have rightly positioned the behavioral finance theory as a veritable tool that can guide economic agents on capital market investment decisions. That means the behavior of investors makes share prices deviate from the economic fundamentals or assumptions. Considering the above findings, the researcher boldly advocates for a paradigm shift to behavioral finance theory, where emotions and psychology or mindsets of investors influence the investment decision-making process and financial markets, hence a veritable guide for decisions on stock market investments. Therefore, the researcher suggested that emotional and psychological checks be carried out on all stock market investors, mainly when an innovation or new policy is promulgated.

Meta Analisis: Beberapa Variabel yang Memengaruhi Earnings Response Coefficient (ERC)

An increase in the number of capital market investors indicates an increasing need for financial information, especially earnings information in which its quality can be measured through earning response coefficient (ERC). The objective of this study is to integrate the factors that affect the earnings response coefficient. This research was carried out using the meta analysis method. The sampling technique used in this research is the purposive sampling method and the object of research is journal articles with topics of earnings response coefficient with a research period ranging from 2009-2020, which resulted in 30 samples obtained. The integration results show the disclosure of corporate social responsibility, company size, profitability, leverage and company growth have a significant effect on the earnings response coefficient.

ESG Reporting and Capital Market Investors: Insights from the Global Technology and Fintech Industries

Abstract This research investigates the evolving nexus between sustainability practices and firm market value, with a specific focus on the rapidly growing Fintech sector. As concerns about environmental, social, and governance (ESG) issues continue to gain prominence, understanding the implications of sustainability efforts on firm performance becomes crucial. This study proposes an empirical exploration of how sustainability initiatives, embedded in ESG scores, undertaken by Fintech firms influence their market valuations. Moreover, the investigation contrasts the findings for the Fintech firms against those for their counterpart Technology firms for the period between 2011 and 2021. The results show that Technology firms are better valued than their Fintech counterparts, which might reflect a perception of higher risk for the later. By employing panel econometric techniques in the system-GMM setting, the paper finds that capital market investors include ESG factors in their valuation of Fintech and Techinology companies, but the environmental and governance-related initiatives at corporate level are most important in this process. The study seeks to contribute to both the theoretical understanding of the sustainability-market value relationship and the practical insights relevant to Fintech firms and their stakeholders.

Determination of Stock Option Prices Using the Black Scholes Method On Stocks Listed On the Jakarta Islamic Index for The Period 2021 - 2022

The capital market is one of the investment instruments favored by the Indonesian people. Reporting from KSEI, the number of investor growth from 2019 to 2022 continues to increase. Recorded in 2019 the number of capital market investors in Indonesia reached 2,484,354 and at the end of the listing on November 3, 2022 the number of capital market investors in Indonesia reached 10,000,628. The purpose to be achieved in this study is to find out and explain the calculation of the value of call options with weekly company stock data in order to find out which stocks are suitable for hedging and decisions that can be made based on the data that has been calculated. The type of research used is descriptive research with a quantitative approach. The sample taken amounted to 12 companies obtained based on determining the criteria in the form of increasing shares seen from the company's trend line during 2021-2022. The calculation method used is Black-Scholes by utilizing Microsoft Excel. The results showed that by using the Black Scholes method in determining option contracts, some stocks in certain semesters are not recommended to use call option contracts because the option price is zero (0), such as INCO shares in semester 2, PTBA shares in semester 4, TLKM shares in semester 3, and UNTR shares in semester 2. The results of the comparison of the Black Scholes stock option contract with the JCI call option contract show that ADRO, AKRA and PTBA shares can provide the highest profit for investors when using the Black Scholes method because they have a lower call option contract value than the market value. ADRO, AKRA and PTBA stocks have a positive purchase option contract difference value of 3 semesters so that they can provide the highest profit for investors.

PENGARUH SELF-ATTRIBUTION BIAS DAN RISK PERCEPTIONS TERHADAP PENGAMBILAN KEPUTUSAN INVESTOR PASAR MODAL

The high amount of capital market investors during the Covid-19 pandemic and the decline in this amount when the Covid-19 pandemic ended made stock prices on the Indonesian capital market fluctuate actively. This prompted policy makers to issue new regulations of Auto Rejection Bawah (ARB) in 15%. This makes the psychology of investors when making investment decisions in the capital market may change. This study tries to see the effect of self-attribution bias and perceived risk as a factor of behavioral finance on capital market investment decision making when the 15% ARB is applied. The data of the study used 45 respondents as investors in the Indonesian capital market and processes them using multiple linear regression through SPSS 25. The results show that there is no effect of self-attribution bias and perceived risk on capital market investment decision making when the 15% ARB is applied. The implication of this research is to provide knowledge about psychological factors that occur when making decisions, especially in the capital market.

Investment Decisions in the Capital Market: Perceptions of Christian Students

Over time, the management of the capital market in Indonesia has undergone changes for the better. The growth in the number of investors in the secondary market is an indicator that the Indonesian capital market is increasingly in demand, especially by young people. The various conveniences in investing and the relatively small initial capital make it attractive for novice investors. This study aims to explore Christian students' perceptions of investment decisions in the capital market. The selection of Christian students as the research sample was based on the results of a pre-survey of one of the capital market investment galleries at state universities in Indonesia which involved the active involvement of Christian students as administrators. The results showed that the investment characteristics of Christian students were not entirely good in terms of self-confidence, knowledge, and self-control, but the psychological perspective of investing was good because they were confident and careful in making investment decisions.