Investors In Indonesia Research Articles

The Indonesian Investors’ Responses toward ERM Disclosure

In Indonesia, enterprise risk management (ERM) disclosure is mandatory and is expected to be substantial risk mitigation for investors. However, it becomes a question of whether the investors respond positively to ERM disclosure. ERM implementation requires the company's resources that should impact its profitability.

Herding behavior in the indonesia stock exchange around the covid-19 pandemic

This study investigates the occurrence of herding behaviour on the Indonesian Stock Exchange during the COVID-19 pandemic. This study finds that herding action happened exclusively in the Indonesian stock market before the COVID-19 pandemic. In contrast, the herding behaviour in the Indonesian stock market decreased during COVID-19 pandemic. Further tests reveal that the decrease of herding behaviour was even higher when the market experienced extreme market return movements in both directions. All the findings stand when using an alternative proxy for the dependent variable in the robustness tests of this study. The results imply that Indonesian investors are more cautious and logical in their investment decision-making during the COVID-19 pandemic, owing to the certainty of the pandemic's detrimental impacts on the economy and, thus, stock prices.

Differentiation Analysis Of Abnormal Stock Return Amid Political Contestation And Pandemic In Indonesia

Political events frequently affect the condition of the stock market and industrial sectors anywhere in the world, Indonesia is no exception. Regarding the political year, the manufacturing industry is expected to perform the best. The two manufacturing industry sectors are expected to gain the highest performance growth, namely the food and beverage industry and textile product industry. Due to the increasing demand for election campaign activities in local Indonesia, both are likely to achieve positive growth. The condition of pandemic of Covid-19 strike combined political events are an event that could have implications for capital market turbulence, this hypothesis is developed on the assumption that major events can affect the macroeconomics so that corporate actions in the form of dividend announcements can affect stock returns, this will certainly be avoided by investors. However, in this research using event study data set for 2018-2020 based on the corporate actions of dividend announcements, it was revealed that this was not an influential factor. Using the event study research method and the paired sample t-test, the results show that there is no difference in stock returns before and after the announcement of dividends, even though the corporate action was carried out during the Covid-19 pandemic which was happened consecutively after political events. From the results of the research conducted by the writers, which results in the premise that cash dividend announcements do not provide a good signal for investors in Indonesia, there is an assumption that investors do not notice dividend announcements as a distortion of interest in investing

The use of visual presentations for integrated reports in the investment decision-making process

PurposeThis study aims to identify the effect of the format of a presentation and the form of information on the decision-making process of non-professional investors in Indonesia. Investor behaviors, including acquisition, evaluation, weighting, judgment, and allocation decisions, are explained explicitly after taking a look at the form of the information and the way it is conveyed in various presentation formats.Design/methodology/approachThis research used web-based experiments. It used a 2 × 2 between-subjects design. Eighty-nine selected students acted as surrogate investors. They were provided with company performance reports presented in different report formats (integrated versus non-integrated) and different forms of information (visual versus descriptive).FindingsThe results showed that information, when presented visually, is more influential on investment allocation decisions in Indonesia. In addition, the result of the post hoc test indicated that integrated reports are more influential than non-integrated reports.Research limitations/implicationsThe results of this study have significant implications for companies that publish financial and non-financial disclosures. The reports are required to be presented in an integrated and visual form in order to increase the investors' level of understanding so they can comprehend a company's performance holistically.Practical implicationsIt is necessary for Indonesian policymakers to create regulations regarding the presentation of financial and non-financial information in an integrated and visual way.Originality/valueThis study fills a gap in the literature on integrated reports by showing that the visualization of information in such reports increases the level of understanding that underpins investment decision-making. Furthermore, this study contributes to cognitive load theory by providing evidence that the kind of presentation of information that facilitates people's cognitive ability is not only in the narrative form but visual presentation also works.

Dividend Policy and Firm Value in Indonesia: The Moderating Role of Capital Structure

This study aims to examine the effect of dividend policy on firm value with capital structure as a moderating variable. The research was conducted on manufacturing companies on the Indonesia Stock Exchange in 2016-2019. The purposive sampling technique took the research data. Data analysis used a moderated regression analysis. The findings of this study indicate that the dividend policy increases firm value. However, this analysis demonstrates that the capital structure has a moderating influence on the effect of dividends on firm value. Investors in Indonesia’s capital market have reacted positively to manufacturing businesses’ dividend payout policies. However, if the company’s capital structure is highly leveraged, this reaction will be diminished.

Examining the determinants of Islamic stock investment

The goal of this study is to determine the factors that influence young Indonesian investors' intentions to invest in Islamic stocks. The Theory of Planned Behavior (TPB) paradigm is used in this study, although financial literacy and trust are also included. This is a quantitative survey-based study. 204 people participated in the research by completing all questionnaires. The data were analyzed using the Partial Least Squares – Structural Equation Modeling (PLS-SEM) technique with the assistance of SmartPLS 3.0. According to the findings of the data analysis, the attitude has a significant positive effect on intention in Islamic stock investments. Subjective norms have no significant positive effect on intention in Islamic stock investments. The perceived behavioral control has a significant positive effect on investor intention in Islamic stocks. Financial literacy and trust significantly increase intention in sharia stock investing.

Changes in investors risk-taking behavior during Indonesian economic recession due to the Covid-19 in 2020

This research discusses the differences in investor risk-taking behavior in Indonesia before and during the economic recession caused by the Covid-19. This pandemic began to infect Indonesia in 2020. Investor risk-taking behavior consists of three criterias, that are return expectation, risk tolerance and risk perception. Factors that can influence investor risk-taking behavior in this study are the economic recession itself and the characteristics of investors. While the characteristics of investors are seen from their status, namely age, gender, work status, marital status, education level, income, net worth and length of investment. In this study, questionnaires were distributed targeting investors in Indonesia. It was found that in fact the Covid-19 pandemic caused changes in investors risk-taking behavior, which included returning expectations and risk tolerance to decrease and risk perception to increase. Characteristics of investors Indonesian in general, it has no effect on investors' risk-taking behavior. Of the ten characteristics of investors, only two correlates with one of the criteria, namely profession and gender. It was found that the characteristics of investors did not have a positive effect because the majority of investors in this study were members of investment, money markets and capital markets communities. They join many of these communities, so that the exchange of information and discussions between one community and another will be affected. Investors’ decision making also based on the results of discussions in the community.

Perlindungan Hukum dan Pengenaan Pajak Bagi Investor Cryptocurrency di Indonesia

The significant increase in crypto investment in Indonesia is very high. This is indicated by the increase in crypto transactions, especially bitcoin and the increasing number of member investors in Indodax as one of the crypto transaction platforms in Indonesia. However, this increase is not supported by laws and regulations that can protect investors against their funds that have been deposited on a crypto transaction platform due to platform errors or due to fraud that is rampant in the cryptocurrency world. The fairly high increase in investment has also attracted the attention of the Indonesian government in collecting income taxes for investors in the crypto world which can increase the government's coffers of wealth destined for national development. However, there is also no regulation that regulates how much and how the income tax will be imposed. imposed on investors. So tthe problem arises as to how legal protection is for crypto currency investors in Indonesia and how income taxes can be imposed on crypto investors. The problem approach used in this research is the statutory approach, and the conceptual approach. Legal protection for CryptoCurrency investors is in the form of supervision from BAPPEBTI, supervision from the Investment Supervisory Task Force, security protection from crypto asset market managers and law protection form UU ITE. The imposition of crypto taxes can be imposed as well as the final share income tax, which is 0.1% of the gross amount of crypto asset sales transactions.

Investment Decisions in Emerging Market: Demographic Analysis of Individual Investor in Indonesia Stock Exchange

The number of individual investors in Indonesia has continued to grow in recent times and has reached 97.67% of the total investors in Indonesia. Due to this high number, the investment decisions of individual investors should be an important benchmark in the movement of Indonesia’s capital market. Investment behavior between individuals is very different and easy to change, but there is a pattern or model that can provide an overview of the activities carried out. Not only psychological factors, but demographic factors are also suspected to be determinants that influence investors’ decisions. The diversity of investment behaviors can be described by stock ownership. In Indonesia, blue-chip stocks are represented in the LQ45 index group. Although investors have different characteristics, their demographics are often used as second references to determine investment behavior. This study aims to determine the investment behavior using four important inherent characteristics of investors including gender, age, occupation, and income. The secondary data obtained from 3,911 investors were analyzed using analysis of variance (ANOVA). The results showed a unique pattern of investment behavior; therefore, the demographics of investors need to be analyzed regularly.

Prediksi Harga Cryptocurrency Menggunakan Algoritma Long Short Term Memory (LSTM)

Technological developments continue to encourage the creation of various innovations in almost all aspects of human life. One of the innovations that is becoming a worldwide phenomenon today is the presence of cryptocurrency as a digital currency that is able to replace the role of conventional currency as a means of payment. Currently, the number of cryptocurrency investors in Indonesia has reached 4.45 million people as of March 2021, an increase of 78% compared to the end of the previous year. Very volatile price movements make cryptocurrency investments considered speculative so the risks faced are also very high. The purpose of this study is to build a predictive model that is able to forecast prices on the cryptocurrency market. The algorithm used to build the prediction model is Long Short Term Memory (LSTM). LSTM is the development of the Recurrent Neural Network (RNN) algorithm to overcome problems in the RNN in managing data for a long period. LSTM is considered superior to other algorithms in managing time series data. The data in this study were taken from the Yahoo Finance website using the Pandas Datareader library through Google Collaboratory. The entire prediction model development process is carried out through Google Collaboratory tools. To improve the accuracy of the model, the Nadam optimization algorithm was used and three testing sessions were carried out with the number of Epochs of 1, 10, and 20 in each session. The final test results show that the best prediction performance occurs when testing the DOGE coin type with the number of Epoch 20 which gets an RMSE value of 0.0630.

The Ease of Investing in Indonesia's Capital Market Based on Improved Financial Literacy, Investment Community and Capital Market School

Indonesia is predicted to have the 4th largest GDP in the world by 2050. One of the major contributors to GDP is investment. Based on KSEI data (2020) the number of investors in Indonesia is still 3.27 million investors or 1.73% of the total productive age population. This proves that Indonesia still needs encouragement to become the country with the 4th largest GDP in the world. One form of this encouragement is to increase people's financial literacy. Data from OJK (2019) states that the financial literacy index of the Indonesian people rose from 29.7% in 2016 to 38.03% in 2019. The investment community is one of the drivers and the ISP community is one of the capital market education activists. The importance of improving financial literacy, the investment community and capital market schools for the ease of investing is an important point to help make Indonesia a country with the 4th largest GDP in the world. The purpose of this study was to determine whether there is an influence between financial literacy, investment community and capital market schools on the ease of investing. The method that used is quantitative with a survey approach. The results show that there is an influence between financial literacy, the investment community and the capital market on the ease of investing, which means that if there is an increase in financial literacy, the investment community and capital market schools, there will also be an increase in the ease of investing.

Determinants of Investment Decision in Cryptocurrency: Evidence from Indonesian Investors

This study aimed to determine the effect of behavior factors and social demography on the investment decision in cryptocurrency in the Greater Jakarta area. The method used in this study is partial least square (PLS) using the SmartPLS software application. The behavior factor variables used in this study are overconfidence, herd behavior, subjective norm, and awareness variables. This study also used social demography moderating variables in age, gender, occupation, education, and investment experience on 400 respondents in the Greater Jakarta area. The test results show that only overconfidence and awareness variables have a significant positive effect on decisions to invest in cryptocurrency and subjective norms variables that have no significant positive effect but can be moderated by social demographic factors such as age and investment experience. In addition, other variables have no significant positive effect. They cannot be moderated by social demographic factors such as age, gender, occupation, and investment experience on the decisions of cryptocurrency investors in Greater Jakarta area. Our study contributes to developing knowledge, insight, skills and analyzing researchers, especially regarding the influence of behavioral factors and social demography on investment decisions in cryptocurrency.

Ratio Decidendi, Agreement, Againts The Decision of MA No. 601K/PDT/2015 in The Case of Agreements that do not use Indonesian

The Supreme Court’s decision in the case of an agreement between investors who enter into an agreement using English is contrary to the agreement of the parties. Changes to the agreement may be detrimental to investors in Indonesia, who must amend the agreement previously made in English. The research method based on the data needed in this research is secondary data obtained through literature study in the form of laws and descriptive analysis, namely analyzing the laws and regulations. The loan agreement between PT. BKP and Nine AM, Ltd. should not be null and void. The judge’s interpretation of a lawful cause is wrong because a lawful cause refers the contents of the loan agreement. The government should be firm in determining a sanction if there is a violation of the law. This is intended so that judges are not wrong in applying regulations so that they do not produce decisions that can harmcertain parties.

KEPUTUSAN INVESTASI MILENIAL PERSPEKTIF PENGETAHUAN KEUANGAN, PERILAKU KEUANGAN DAN SIKAP KEUANGAN

Abstract - This study aims to examine the factors that influence millennial investment decisions. This study predicts that financial knowledge, financial behavior and financial attitudes of the millennial generation who tend to be independent are the considerations for millennial investment decisions. Previous studies that examined investment decision factors only focused on quantitative financial factors without paying attention to financial factors in terms of knowledge and attitude maturity in managing finances. Data from PT Kustodian Sentra Efek, the current number of millennial Indonesian investors is 51.36% in the age range of 21-40 years. Therefore, this study will examine how Financial Knowledge, Financial Behavior, and Financial Attitudes influence investment decision making for the millennial generation. 123 respondent questionnaires have been collected throughout Java by using purposive random sampling. This study finds that these three variables have a positive effect on investment decision making for the millennial generation on the island of Java.
 Keywords: Financial Attitude; Financial Behavior; Financial Knowledge; Investment Decision; Millennial Generation

Valuasi Saham Perusahaan Menggunakan Metode Relative Valuation

The data shows that the percentage of investors in Indonesia is very small, which is still below 1%, while the percentage of investors in neighboring countries is around 20% -30%. The purpose of this research is to help novice investors to see whether the company's stock price is undervalued or overalued and to compare the prediction accuracy of various ratios in the model. The ratios examined in this paper are Price Earning Ratio (PER), Price to Book Value (PBV), Price to Sales Ratio (PSR), and Price to cash flow from operation ratio (PCF). The approach used in this study is the Relative Valuation Method, where the value of an asset is calculated by looking at the market price for the same or similar asset. Of the 72 companies studied, 45 LQ 45 companies and the rest were peer companies in the same industrial sub-sector with LQ45 companies. Of the four ratios (PER, PBV, PSR and PCF), PCF gave the highest accuracy results. Based on the appropriate results of the four ratios, the OVERVALUED Shares (should be sold / not purchased): In 2018 there were 8 shares, in 2017 there were 12 shares and in 2016 there were 6 shares. UNDERVALUED Shares (preferably purchased / held): In 2018 there were 8 shares, in 2017 there were 5 shares, and in 2016 there were 11 shares.
 Keywords: Relative Valuation, Price/Earnings Ratio (PER), Price/Book Value (PBV), Price/Sales Ratio (PSR) dan Price to Cash Flow (PCF).

Cryptocurrency as Investment in Commodity Futures Trading in Indonesia; Based on Maqāṣid al-Sharī’ah Approach

Lately, cryptocurrency investors and transactions in Indonesia are thriving, the number of crypto asset investors as of the end of February 2021 has reached 4.2 million people, which exceeds the number of stock investors in Indonesia. This study aims to determine specifically cryptocurrency as an investment in commodity futures trading in Indonesia using the Maqāṣid al-Sharī’ah approach. This research uses a qualitative approach. The data collection technique used is literature study by collecting data from previous studies in the form of documentation of articles, journals, or books as well as publication data from other parties. The data analysis techniques used were data reduction, data presentation, and concluding, from the collected data analyzed through SWOT analysis (strengths, weaknesses, opportunities, and threats) then continued using the Maqāṣid al-Sharī’ah approach (Maṣlaḥah and Mafsadah). The results show that cryptocurrency technology with blockchain can indeed be recognized as an excellent revolutionary technology, but the position of cryptocurrency as an investment in commodity futures trading contains an element of gambling because it contains high speculation and is gambling by taking advantage of the level of volatility. In addition, cryptocurrencies are prone to be used by illegal practices such as money laundering, so that when compared to Maṣlaḥah and Mafsadah it contains greater Mafsadah.

Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?

Research aims: This paper discusses the effect of financial literacy and automatic investment technology on intention to invest in the capital market during the early pandemic.Design/Methodology/Approach: The research population was students studying economics and finance in institutions located in Yogyakarta Special Region Province. The sample of 384 respondents was obtained through questionnaires distributed online. To test the impact of financial literacy and automatic investment technology on intention to participate in the capital market, multiple linear regression was used.Research findings: The researchers found that financial literacy and automatic investment technology affected students’ intention to invest in the capital market. The number of students with a moderate level of financial literacy score dominated, followed by the students with low and high literacy scores. Besides, students’ background in economic and finance appeared inadequate to solely determine the financial literacy score.Theoretical contribution/Originality: This paper contributes to the investment area, especially related to the automatic investment technology “Robo advisor,” that is still rarely studied yet, which will be a significant issue in the future. It also provides empirical results, which explain the investment intention through financial literacy. Moreover, this study was conducted during the massive growth of investors in Indonesia during the pandemic.Practitioner/Policy implication: This study provides a useful reference to the financial sector, especially the capital market. Inclusive programs regarding financial literacy should be expanded for wider society to enhance their knowledge and dismiss lack of confidence in capital market participation. Private sectors providing automatic investment technology are suggested to continue developing a more convenient application to be accessible by a broader range of society.Research limitation/Implication: The research included only students as the sample; hence, further research may use a larger area of the sample with various backgrounds and ages. Other determinants, such as norms, environment, risk, and more advanced financial literacy measurement, can also be added to enrich future studies and literature.

TRENDS AND DETERMINANTS OF FIRM VALUE

Due to the increase in the number of investors in Indonesia, businesses must work to raise their company's value in order to attract investors' attention. The value of the business should be a concern for both the business and the investors who utilize the value of the firm to make investment decisions. This research takes the form of a review of the literature on a number of recent studies on firm value undertaken in Indonesia. The research references are papers published between January 2019 and June 2021 in six journals accredited by SINTA (Science and Technology Index). The article discusses current trends in firm value research and the numerous determinants utilized. Numerous variables reflect the determinants of firm value, with firm size being the most often utilized independent variable. Numerous underlying theories explain the relationship between independent variables and firm value, with agency theory being the most often chosen by researchers. Several future research directions are discussed in this study in order to serve as references in the academic field and to inform enterprises about the variables that determine firm value.

EFFECT OF FINANCIAL LITERACY AND RISK ATTITUDE ON INVESTOR BEHAVIOR

This research aims to examine the related effects of financial literacy and risk attitudes towards investor behavior in the Indonesian capital market with the motive of saving as a mediating variable. This study uses a quantitative approach and partial least squares- structural equation modelling (PLS-SEM) to test hypotheses. The research data was obtained from 110 questionnaires distributed to capital market investors in Indonesia using the purposive sampling method. The results of this study indicate that financial literacy, risk attitude and saving motives have positive and significant effects on investor behavior in the Indonesian capital market. The influence of financial literacy and risk attitude also has a positive and significant effect on saving motives. However, the motive for saving money cannot mediate the effect of financial literacy and risk attitude on investor behavior. Theoretically, the implications of the results of this study are the level of financial literacy, risk attitude, and saving motives can directly influence investor behavior. The higher the financial literacy, the better the attitude in facing investment risk and the greater the motive for saving, the better the investor's behavior in making investment decisions. Whereas in practical terms, this implication is used as input for investors to further increase financial literacy, pay attention to the level of risk of selected investments, and enlarge the motives for saving so that the purpose of investing can be achieved well.

The Effect of Product Knowledge and Influence of Society on Investment Intention of Stock Investors with Perceived Risk as Mediation

This study aims to find scientific evidence about the factors that influence the investment intentions of stock products in Indonesia. The research subjects are stock investors in the Indonesian capital market in 2020. The objects studied include product knowledge, risk perception, influence of society, and investment intentions. The sample was selected by purposive random sampling method. Primary data collection is done online by distributing questionnaires using Google Docs via social media WhatsApp, Telegram and Line. The number of research samples is 470 data. Data analysis was performed using SEM-PLS in two test categories, namely testing the outer model and testing the inner model. The results of this study indicate that product knowledge and influence of society have a significant effect on investment intention of stock investors in Indonesia, perceived risk does not significantly affect investment intention. Other findings prove that product knowledge has a significant effect on risk perception. In addition, this study also proves that Perceived Risk cannot mediate product knowledge on investment intention. Thus the results of this study can clarify the relationship between product knowledge, perceived risk and influence of society on investment intention so that at least it can provide guidance to the community to increase investment intention.